The largest sale of a controlling stake in Sri Lankan listed company by a foreign owner

Client:

Singer Asia Limited

Hong-Kong based holding company with consumer durables retailing, manufacturing and financing operations across Asia

Target:

Singer (Sri Lanka) PLC (“Singer SL”)

Largest consumer durables retailer in the country, listed on the Colombo Stock Exchange

Acquirer:

Hayleys PLC

Diversified Sri Lankan conglomerate

Deal Size:

US$ 82m 

(Enterprise Value: US$ 275m)

Context:

In 2011/12, the shareholders of Singer Asia, the owner of Singer (Sri Lanka) decided to monetize this asset. Several international and local investment banks were hired but failed to complete a transaction. 

Singer Asia engaged Asia Securities in May 2017 and was able to complete a sale within 5 months.

Asia Securities’ Role:Exclusive sell side advisor, managing all aspects of the transaction, including buyer identification, diligence, negotiations and closing
Transaction StrategyA targeted solicitation of a limited number of Sri Lankan buyers due to client requirement to minimize information leakage and disruption
Transaction outcome
  • Seller achieved targeted valuation
  • Swift execution
  • Transaction confidentiality maintained – No market leakage