The diversified manufacturing and trading conglomerate, Lankem Ceylon PLC (Lankem), last week gained the full ownership in its subsidiary JF Packaging (Pvt.) Limited for Rs.320 million, a disclosure to the trading floor of the Colombo bourse said.
Lankem acquired the subsidiary’s remaining non-controlling interests by purchasing 27.5 percent of JF Packaging shares from the latter’s former Managing Director Lakshman
Lankem said that the transaction was in normal commercial terms.
JF Packaging was founded in 1987 by De Fonseka’s family and is currently conducting packaging operations based in Kotugoda, employing around 110 individuals.
During the 2016 financial year, the non-controlling interests of JF Packaging had made Rs.16.82 million in net profits, up from a Rs.508,000 net loss year-on-year (YoY). The company posted a total net profit of Rs.61.15 million in 2016 compared to a Rs.1.85 million loss YoY.
Revenue for the year was Rs.1.59 billion, increasing from Rs.246.51 million YoY.
JF Packaging’s total assets at the end of the 2016 financial year stood at Rs.1.45 billion, higher than the Rs.1.37 billion recorded at the start of the financial year, while the total liabilities for the same period increased marginally to Rs.1.16 billion from Rs.1.15 billion.