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Hemas divesting travel and aviation assets to Acorn Partners for Rs.201Mn

Business News: Hemtours (Private) Limited, a 100% owned sub-subsidiary of Hemas Holdings PLC (HHL), has divested 80.1% stake in its Forbes Leisure Services (Private) Limited to Acorn Partners (Pvt)) Ltd, on March 13,2020 at a total consideration of Rs. 201 million, according to a stock filing.

Acorn is owned by HHL’s former Executive Director Malinga Arsakularatne and several others in the senior management team of the subsidiaries of Forbes Leisure Services (Private) Limited.

Forbes Leisure Services (Private) Limited consists of businesses operating in outbound and inbound travel and airline representation.

“In line with Hemas’ portfolio strategy of focusing on growing its core sectors of consumer, healthcare and mobility, the group has embarked on restructuring its stakes in the travel and aviation sectors.

“As a result, the group has reduced its shareholding in inbound and outbound travel and selected aviation representation businesses with the majority stake having been acquired by some members of its senior management team,” HHL said in a press release.

However, this transaction excludes Emirates Airline agency which will be positioned as a core component of HHL’s Mobility sector, that includes businesses in Integrated Logistics, and Liner Shipping agencies of Evergreen Line and Far Shipping line.

HHL will remain as a minority shareholder of FLS, retaining a 19.9% stake.

“We are confident that this change in ownership structure, where the management team become significant owners, will drive strong growth in the business,” said Mr. Steven Enderby, Group CEO, Hemas Holdings PLC.

At the same time Hemas is committed to further strengthen its strategic partnerships in the Mobility Sector and grow its Aviation and Maritime Representations in Sri Lanka on behalf of Emirates Airlines, Evergreen Group and Far Shipping. The Group is expanding its Logistics footprint through the new Spectra Logistics Park, thereby enhancing its focus and synergies in this Sector.

“Hemas as a Group will continue to develop our core Consumer brands and take these to new regional geographies, Bangladesh, India and Myanmar. In Healthcare, completing the new state of the art pharmaceutical manufacturing plant at Morison PLC remains a key priority, as we target full commercial operations in early 2021. In our Hospitals, plans are underway to address the increased demand and expand our services while our Pharmaceutical Distribution has just taken on a major new nutrition agency. We continue to expand in Logistics and Mobility with our new logistics park operated by Spectra ramping up. With all these major expansion activities in our core sectors unlocking capital and management from our Travel and Aviation interests will drive future growth. We anticipate that the restructuring will be earnings accretive and enhance our return on capital. These changes will also provide improved access to capital and increased business focus for these Travel and Aviation businesses from the new ownership structure.” Enderby added.

Hemas Holdings PLC touches the lives of millions of loyal customers, every day, via its Consumer, Healthcare and Mobility, products and services. Over a span of seven decades, Hemas has enriched lives, empowered businesses, and have made a positive contribution to the nation’s economic development. The Group has also expanded regionally with operations in Bangladesh, West Bengal and Myanmar.