Sri Lanka ERI takes over management of SATL

07 Jun '10

2 min read

The stock exchange records depict that, the management of South Asia Textile Industries Lanka (SATL), a textile producer, has been acquired by Sri Lanka's Environmental Resources Investment (ERI), an investment holding company, for Rs 710 million.

Ceylon Leather Products, subsidiary of ERI in a statement revealed about its intentions to get hold of 51 percent ownership of SATL by means of Rs 550 million worth of private placement.

Whereas the holding company of Ceylon Leather Products, ERI, in an independent statement informed about its keenness to acquire 8 percent of SATL, by way of a private placement worth Rs 160 million.

ERI managed by Lionhart Investments, a private firm, now with a total investment of Rs 710 million, possesses 59 percent controlling stake in SALT, a textile producer, manufacturing knitted fabrics used for a series of garment and industrial purposes.

As per the last audited net asset value of SATL, each of the company's shares was rated at Rs 17.86. SATL was established in April 2004 to be a part of the investment promotion agency, the Board of Investment (BOI), with an investment of $15 million from Singapore's South Asia Textile Industries. The firm was set up on the forsaken site, earlier occupied by the state-run, Pugoda Textile Mills.

With BOI's approval, investors now are eligible for tax holidays, as also zero-duty on imports of machinery and raw materials. The statement also revealed that, SATL since its foundation, has been running in profits and that, the company's annual turnover stood at Rs 3.6 billion in 2007 and Rs 4 billion in 2008.

Fibre2Fashion News Desk - India