Vallibel One acquires 50% stake in Orit Apparels

05 Jul '11

2 min read

Vallibel One (VOL), a holding company managed by business tycoon Dhammika Perera, has inked a deal with Orit Apparels, pursuant to which it would invest US$ 7.26 million to acquire a 50 percent stake in the apparel firm.

Orit Apparels, the US$ 80 million company was established as a BOI firm in Sri Lanka in 1978 and employs more than 6,800 workers in its eight plants. As country's major specialist denim production firm, Orit Apparels houses a capacity to produce 822,000 pieces of apparels per month.

The notification stated that VOL is to obtain 50 percent stake or 24.41 million ordinary shares in Orit Apparels. Orit was a joint venture between an American investor with 70 percent share holding and industrialist Channa Palansuriya holding the rest. The 70 percent share of the American investor has now been acquired by VOL and Palansuriya in the ratio of 50:20.

Over and above its recent acquisition of 51 percent stakes in Delmege Forysth Group which it acquired for three billion rupees, VOL is also a 51 percent stakeholder in Royal Ceramics (RCL) and LB Finance (LFIN), and it even holds a 15 percent stake in Sampath Bank.

Besides, Dhammika Perera in his individual capacity also holds a 31 percent stake in Hayleys (HAYL), a blue-chip firm.

Fibre2fashion News Desk - India