- Ups stake to 60% by purchasing 6.7mn shares from Tata Global Beverages
- Sunshine Holdings says Tata will continue collaborative partnership with revised strategy
Sunshine Holdings PLC said yesterday it bought over 6.7 million shares of Estate Management Services Limited (EMS) from Tata Global Beverages Limited for Rs.1.6 billion.
EMS is the holding company for Watawala Plantations PLC, Hatton Plantations PLC and Watawala Tea Ceylon Limited (WTCL).
EMS was previously managed under a tripartite ownership between Sunshine Holdings PLC, Pyramid Wilmar, and Tata Global Beverages, with each party holding an equal share in the company.
Following the deal, Sunshine will hold 60 percent of EMS while Pyramid Wilmar will hold the remaining 40 percent.
Tata Global Beverages is said to have divested its EMS stake in order to focus more on its branded business. Recently the company divested its stake in joint ventures in China and Russia.
A statement by Sunshine Holdings said despite the sale of shares, Tata Global Beverages will continue its collaborative partnership with Sunshine Holdings but with a revised strategy that places greater emphasis on international branding and marketing of TATA Tea which will continue to be sourced from Watawala Plantations.
“Our close partnership with Tata Global Beverages has resulted in numerous achievements, milestones and accolades for Watawala Plantations and WTCL over the past two decades. This long and fruitful relationship with Tata Global Beverages is underpinned by an unblemished legacy of trust, excellence, and innovation and moving forward, we will continue to draw on these strengths as we continue to adapt and grow”, Sunshine Holdings Group Managing Director Vish Govindasamy said. “We also see this moment as an opportunity to take more direct action aimed at reforming and rejuvenating less profitable sectors of our tea business while emulating and enhancing the examples, practices and techniques utilized in our best performing tea estates. In this regard, we look forward to exploring new opportunities for partnerships and synergies between Sunshine and Tata Global Beverages”, added Govindasamy.
Notably, Sunshine Holdings has an investment in Tata Communications Lanka Ltd, of which Govindasamy is the Chairman, who said Sunshine would continue to seek out synergistic branding and marketing opportunities, particularly with regard to international markets, leveraging on the immense resources and global reach of Tata Global Beverages.