Overall it seems Richard Pieris group is pulling out company's retained earnings from reserves to Shareholders since it may be a hint to note that 'The Plantation Sector management seems a little Uncertain in Sri Lanka these days...'According to financials Kegalle had over Rs.3.1 billion retained profit as at 31st March 2015...this also gives a hint that 'Scientist turned Investor Dr. Sena Yaddehige and management has a good 'Smart Thought' to recover their investment made in plantations sector in 2004 April when Richard Pieris group bought 50% of RPC Plantations Company from John Keells at Rs. 465.75 million taking entire control of Maskeliya and Kegalle Plantations...last 3 years RPC has been restructuring their ownership of plantations and this time the dividend of Kegalle itself will give about Rs.889.6 million Dividend income to Richard Pieris owned RPC Plantation Management Services (Pvt) Ltd alone...still Kegalle has 2 billion retained profit for future if after they payout the Dividend on July 29th 2015....which means Kegalle looks good!
Richard Pieris buys out JKH to take control of Maskeliya & Kegalle Plantations
John Keells Holdings Limited (JKH) and Richard Pieris & Company Limited (RPC) yesterday announced that they have successfully completed the deal under which RPC acquired full ownership of RPK Management Services (Pvt) Limited, with controlling stakes in Kegalle Plantations and Maskeliya Plantations Limited, by buying out the 50% stake held by JKH.
This transaction gives Richard Pieris 100% control of RPK at a price tag of Rs. 465.75 million paid to JKH for their half share of the company. Richard Pieris previously owned 50% of the joint venture.
A JKH spokeswoman said that the Colombo Stock Exchange has been informed of the completion of the deal.
A joint news release from the two companies said that the acquisition would enable Richard Pieris, a pioneer value adder to Sri Lanka grown rubber, to further consolidate and secure its sources of rubber.
‘RPC is looking to venture into the export of branded value added teas and the acquisition would complement this effort. RPC is also considering tourism and real estate development opportunities within the estates," the release said.
Maskeliya and Kegalle Plantations own a portfolio of tea and rubber estates.
JKH decided to exit from RPK as part of its strategy of regularly reviewing and rationalizing its portfolio.
RPK was formed in 1992 as a joint venture between JKH and Richard Pieris to own and manage regional plantation companies privatized by the government.
In addition to Kegalle and Maskeliya Plantations, RPK controls Exotic Horticulture (Pvt) Limited growing fruit and vegetables and Hamefa Kegalle Limited which manufactures furniture from rubberwood.