gets ok in deal with Misty Mountain
By Duruthu Edirimuni
The Treasury and the Ministry of Plantations have given the greenlight
to Hayleys Plantations Services to sub-lease three of its estates
to Misty Mountain Holdings (MMH), a company with US interests, according
to Tissa Gunatilleke, CEO, Hayleys Plantations Services.
had been earlier unsuccessful in its efforts to buy other local
tea firms. The Memorandum of Understanding (MoU) between Hayleys
and MMH stipulates a down payment of around Rs. 42 million and an
annual lease rental. The Treasury had to give approval for the agreement
as the golden shareholder in the Hayleys plantations subsidiary.
said the sub-lease would take place after MMH meets certain obligations
stipulated in the contract. "We want to capitalise on the market
network that MMH has established in the US and Canada," he
being unable to seal deals to buy tea export firm HVA Lanka and
John Keells subsidiary Namunukula Plantations Ltd (NPL), MMH has
been working on sub leasing three estates of Talawakele Plantations
owned by Hayleys. HVA said MMH had failed to pay up according to
the initial agreement while MMH said it decided against the investment
after its due diligence of the export firm.
had also entered into a Sale and Purchase Agreement with JKH whereby
the former conducted a due diligence of NPL and its holding company
Keells Plantation Management Services (Pvt) Ltd (KPMS) with the
intention of purchasing KPMS. However that deal failed as MMH was
unable to satisfy conditions in the agreement.
had agreed to a purchase consideration of Rs.400 million for 100
percent of KPMS subject to the due diligence of 65 days. KPMS has
a 58.75 percent stake in NPL.