Hemas sells stakes in travel and aviation sectors
View(s):Hemas Group, in line with its portfolio strategy of focusing on growing its core sectors of consumer, healthcare and mobility, has embarked on a restructuring of 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, the company said in a statement on Monday.
Hemas will remain a shareholder in the business with a 19.9 per cent stake. The professionalism, dedication and commitment of the management and staff of these businesses will continue uninterrupted to provide their customers and principals’ high levels of service, it said.
“We are confident that this change in ownership structure, where the management team become significant owners, will drive strong growth in the business,” said Steven Enderby, Group CEO, Hemas Holdings PLC.
At the same time Hemas said it was 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,” the CEO said.
Meanwhile in a stock market filing on March 13, Hemas Holdings Plc said its subsidiary Hemtours Ltd has entered into a share sale and purchase agreement with Acorn Partner Ltd to sell an 80.1 per cent stake in Forbes Leisure Services Ltd for Rs. 201 million. The balance 19.9 per cent will be retained by Hemas.
It said Acorn is owned by Malinga Arsakularatne, an Executive Director of Hemas Holdings, and members of the senior management team of the subsidiaries of Forbes Leisure Ltd. Mr. Arsakularatne has also resigned from the boards of Hemas and its subsidiaries.