A landmark stock market transaction took place on Tuesday (27 May), with Ceylon Steel Corporation acquiring a 9.99% stake in Hatton National Bank PLC (HNB) from Browns Investments PLC.

Making it one of the largest deals on the Colombo Stock Exchange in recent times, the negotiated deal involved the transfer of 45,317,177 voting shares at Rs. 305.00 per share, generating a turnover of Rs. 13.82 billion

Browns Investments held 9.99% of the voting share capital in HNB, making it the largest single shareholder, prior to the sale. 

Capital Alliance Securities (Pvt) Ltd, which acted as the broker for the buyer, Ceylon Steel Corporation, also handled 60% of the trade on behalf of the seller, Browns Investments PLC. (Newswire)

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LIPTON Teas and Infusions, a tea and herbal drink producer from the Netherlands, has agreed to the terms of a partnership which will result in the transfer of its tea estates in Rwanda, Kenya, and Tanzania to Sri Lankan firm, Browns Investments.

Issuing a statement, LIPTON Teas and Infusions announced that the agreement also includes that all tea sold by Browns worldwide will be grown and harvested to a new set of standards covering quality, social, and environmental protection. 

According to the announcement, this long-term partnership will make Sri Lanka’s Browns Investments the world’s leading tea exporter- around 87 million kilograms each year- as well as one of the largest suppliers to the world’s largest tea company, LIPTON Teas and Infusions.

Browns will invest in its estates in Kenya and Sri Lanka to meet the new standards by 2025, as well as in the creation of additional skilled employment opportunities in Kenya. 

Also, shares totalling 15 per cent of the main Kenyan operating company will be offered to the communities of Kericho and Bomet, where the estates are situated, at a substantial discount to create accessible communal equity and mutually aligned economic participation.

LIPTON Teas and Infusions and Browns are also jointly creating a Community Welfare Trust with an initial one billion Kenyan shillings dedicated to helping address other needs in local and neighbouring communities.

Lipton Kenya Estates is made up of 11 plantations and eight factories distributed across the two counties of Bomet, Kericho and Kiambu.

In line with Lipton Teas and Infusions’ vision of creating value for all, the proceeds or the transaction will be reinvested into the East Africa region to drive local and industry-wide progress in relevant areas such as skills development and climate change mitigation.

Full statement : https://shorturl.at/fpstZ (Newswire)

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