Browns buys 37.6% stake in Tea Smallholder Factories for Rs. 395 m from JKH
- CNL Reporter
- April 7, 2025
- Business News
- Browns
- 0 Comments
Move triggers SEC Takeovers and Mergers Code at Rs. 35 per share; Akbar Brothers and Central Finance other major shareholders Browns Group yesterday bought 37.59% stake in Tea Smallholder Factories PLC for Rs. 395 million from John Keells Holdings PLC.
The stake amounting to 11,276,839 shares was bought at Rs. 35 each. The acquisition is through Udapussellawa Plantations whose major shareholder is Browns Power Holdings Ltd., with 90% stake.The acquisition has triggered the SEC Mergers and Takeovers Code. Akbar Brothers owns 24.39% stake in Tea Smallholder Factories and Central Finance (23%).
The public float of Tea Smallholder Factories as at 31 December 2024 was 33% held by 1,479 shareholders.The Udapussellawa Plantations share price gained by 75 cents to Rs. 125.25 yesterday. Tea Smallholder Factories share price gained by 80 cents to Rs. 42.30.
In 2023, Browns acquired James Finlay businesses in Sri Lanka and Kenya becoming the world’s largest tea producing group. This saw Browns acquiring Hapugastenne Plantations PLC, and Udapussellawa Plantations PLC, whilst separately it owns Maturata Plantations.
