PC House Holdings has acquired a controlling stake in Orient Garments Limited (OGL), a Sri Lankan manufacturer and exporter of high-end apparel with special expertise in outerwear, casual wear and sportswear.
In a negotiated deal, Finco Group, the owners of OGL, has sold a 51 percent or 28 million shares at LKR 21.50, nearly LKR 13 below the market value to PC House Holdings for LKR 600 million.
While PC House Holdings, which is an unlisted firm, has purchased 12 million shares, its chairman Mohammed Rishan has purchased the remaining 16 million shares. PC House will now be looking for possible expansion opportunities and is already in talks with a Bangladesh-based group dealing in readymade garments.
After selling the controlling stake in OGL, Finco Group plans to expand in the leisure sector by building two resorts in Eastern Sri Lanka, where peace has returned after the end of the 30-year war.
OGL was established in 1982 as a producer of outerwear catering to the export market. Today, it employs over 3,500 people and manufactures around 3.5 million garments per month through 1,500 machines.
After OGL recently got listed on the Colombo bourse, its founders slowly decreased their stake in the company.
Fibre2fashion News Desk - India
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