Agalawatta share sale—the plot thickens

Agalawatta Plantations PLC yesterday in a stock market filing said it was notified that the sale of 60.80 percent of its shares by Mackwoods Plantations (Pvt.) Ltd for Rs.304 million was executed with the approval of the two shareholders of the latter.

The filing said Mackwoods Plantations was fully owned by Mackwoods (Private) Limited and a foreign shareholder. Further, Agalawatta Plantations acknowledged that it was aware that Mackwoods Plantations had been contemplating on divesting the shares of the company for a “considerable period”, amid the plantation industry downturn in the past few years.

The shares were bought by the Browns group, which has controlling interests in Pussellawa Plantations Ltd and Mathurata Plantations Ltd.

Agalawatta Plantations company secretaries said the filing was made to the bourse to clarify any reports of rumours pertaining to the change in the shareholding of the company. However, market regulator the Securities and Exchange Commission has directed the broker who carried out the transaction to withhold the sales proceeds of the share sale until it examines the matter.

The directive was issued following the complaints made by two Mackwoods group Directors—Nirmalie Samaratunga and M.J. Varma.