Much talked share in the Colombo market these days, Expolanka Holdings announces it has bought a 100 per cent stake in US-based IDEA Logistics LLC, for 97 million US dollars.
The company has done the deal through two overseas units Expolanka says further.
“EFL Global Logistics (Pte.) Ltd (Singapore) and EFL Global LLC (USA), fully owned subsidiaries of Expolanka Holdings PLC (Expolanka), has acquired 100% equity interest of IDEA Logistics LLC and its Group of Companies on the 10th August 2021 for a total purchase consideration of 9.7 million UD dollars,” the firm said in a stock exchange filing.
IDEA Logistics LLC is a Central American logistics company headquartered in the United States, servicing a range of US customers, offering freight forwarding, warehousing and trucking services.
Analysts say the speculation on the take-over impacted the recent spike in the share price of Expolanka which reached more than doubled to near 150 rupees.
On Friday, it gained 1.7 per cent to 149.25 rupees, a day after it jumped nearly 20 per cent.
“The acquisition is an important strategic initiative enabling Expolanka to expand its operations into Central America, which is gaining popularity as an emerging and fast-growing apparel manufacturing hub, in relation to Near Shoring strategies adopted by leading US customers,” the firm said.