News & market updates

Central Industries PLC appointed C.S. Hettiarachchi as Non-Executive Chairman and Thilini Wathsala Weerasinghe and Dushan Virantha as Non-Executive Directors. Weerasinghe and Virantha hold senior roles at Central Finance Company PLC and Hettiarachchi is also a director of Tea Smallholder Factories PLC.

Brown & Company PLC reported FY25 consolidated revenue of Rs. 107.82 billion and PBT of Rs. 25.88 billion, with total assets of Rs. 752.69 billion. The Group completed major East Africa Lipton plantation acquisitions, took controlling stakes in Sierra Cables and Tea Smallholder Factories, and saw strong results across its plantations and hospitality units.

LOLC Group posted a PAT of Rs.41 billion for FY2024/25 (up 89%) and lifted total assets to Rs.2.03 trillion. LOLC Finance PLC recorded a pre-tax profit of Rs.30.8 billion with NPLs falling to 4.97%, while the group expanded plantation holdings and boosted hospitality and manufacturing contributions.

THE VIEWS, COMMENTS, AND ADVICE OF THE BOARD OF DIRECTORS OF TEA SMALLHOLDER FACTORIES PLC IN TERMS OF RULE 13(2) OF THE COMPANY TAKEOVERS AND MERGERS CODE OF 1995 (AS AMENDED) ON THE MANDATORY OFFER MADE BY UDAPUSSELLAWA PLANTATIONS PLC TO THE SHAREHOLDERS OF THE COMPANY TO PURCHASE 18,723,161 (62.41%) ORDINARY VOTING SHARES OF TEA SMALLHOLDER FACTORIES PLC

Browns Investments PLC's subsidiary Browns Power Holdings acquired 100% of FLMC Plantations for LKR 4.8 billion on May 5, 2025, making BIL the largest tea producer in Sri Lanka with ~17.5m kg annual made tea capacity. FLMC controls ~11,500 ha across 24 estates producing ~4.3m kg made tea and ~2.3m kg rubber annually.

Browns Investments Plc (via subsidiary Browns Power Holdings) acquired FLMC Plantations (Pussellawa Plantations) for Rs 4.8 billion, adding over 11,500 hectares and raising the group's annual made tea capacity to about 17.5 million kg.

Browns Investments PLC (BIL) acquired FLMC Plantations Ltd. from Damro and Piyestra for Rs. 4.8 billion under a share sale and purchase agreement. FLMC holds Pussellawa Plantations (11,500 ha across 24 estates producing ~4.3m kg made tea and ~2.3m kg rubber) and Melfort Green Teas, boosting the group's tea capacity to ~17.5m kg.

Udapussellawa Plantations (UDPL.N0000) has made a mandatory offer to acquire the remaining 62.41% (18,723,161 shares) of Tea Smallholder Factories (TSML.N0000) at LKR35.00 per share. A detailed mandatory offer document will be sent to shareholders within 35 days.

ANNOUNCEMENT UNDER THE COMPANY TAKE-OVERS AND MERGERS CODE 1995 (AS AMENDED IN 2003) AND GAZETTED IN THE GAZETTE EXTRAORDINARY NO. 875/9 DATED 16TH JUNE 1995 AND AMENDED BY GAZETTE NO. 1299/6 DATED 29TH JULY 2003-MANDATORY OFFER BY UDAPUSSELLAWA PLANTATIONS PLC (TO PURCHASE 18,723,161 (62.41%) ORDINARY VOTING SHARES OF TEA SMALLHOLDER FACTORIES PLC

ANNOUNCEMENT UNDER THE COMPANY TAKE-OVERS AND MERGERS CODE 1995 (AS AMENDED IN 2003) AND GAZETTED IN THE GAZETTE EXTRAORDINARY NO. 875/9 DATED 16TH JUNE 1995 AND AMENDED BY GAZETTE NO. 1299/6 DATED 29TH JULY 2003 - MANDATORY OFFER BY UDAPUSSELLAWA PLANTATIONS PLC (TO PURCHASE 18,723,161 (62.41%) ORDINARY VOTING SHARES OF TEA SMALLHOLDER FACTORIES PLC

Browns, via Udapussellawa Plantations, bought a 37.59% stake (11,276,839 shares at Rs.35) in Tea Smallholder Factories for Rs.395 million, triggering the SEC Takeovers and Mergers Code. Akbar Brothers and Central Finance hold 24.39% and 23% respectively; TSML and UDPL shares rose on the news.

Colombo stock market plunged over 2% as the ASPI fell 350 points after the US imposed reciprocal tariffs on Sri Lanka, hitting export-oriented counters. Turnover rose to Rs.3.8bn with heavy selling in Commercial Bank, Hayleys, Melstacorp, HNB and Sampath, while a 38% TSML stake sale by JKH drove turnover.

John Keells Holdings (JKH) sold its 37.62% stake in Tea Smallholder Factories PLC to a LOLC subsidiary for Rs 395 million (11,286,000 shares at Rs 35 each). Udapussellawa Plantations PLC, a LOLC subsidiary, acquired 11,276,839 of those shares.

Dividend · Rs 0.21 · XD Feb 14, 2025

First Interim dividend of LKR 0.21/share; XD 2025-02-14; record 2025-02-16; payable 2025-03-06; FY 2024/25

Sri Lanka stocks fell 0.97% as the ASPI closed down 166.24 points at 16,956 and turnover was Rs3bn, the lowest so far this year. John Keells, Browns Investments and Tea Smallholder Factories announced interim dividends and net foreign outflow was Rs179mn with foreign selling in several large stocks.