- Regency Teas makes strategic investment of Rs.290mn for 12% stake in Hatton Plantations
- Partnership enables Hatton Plantations to benefit from Regency Teas’ management expertise
Hatton Plantations PLC (HPL) is entering into a strategic partnership with Regency Teas, a milestone in the company’s rapid and remarkable progress.
In a share trade completed this week, Regency Teas made a strategic investment of Rs.290 million by acquiring close to 30 million HPL shares from Lotus Renewables, representing 12.28 percent of HPL’s share capital, an announcement made to the Colombo Stock Exchange said.
Lotus Renewables is an energy sector leader in the country, with a diverse company portfolio including HPL. As one ofSri Lanka’s largest tea producers, HPL generates close to 10 million kilograms of tea, with 14 estates and 11 factories. Its plantations span is in excess of 7,200 hectares of land,and its premium quality high-grown teas are grown in estate elevations reaching 4,800 ft above sea level.
Upon completion of the transfer, Lotus would continue to hold the majority shareholding of 75.65 percent of HPL.The proceeds of the share sale will be used by Lotus primarily to expand its renewable and agricultural portfolios.
HPL is expected to benefit from Regency Teas’management expertise and vision, especially with its standing as a leading exporter of value-added tea from Sri Lanka to over 25 countries worldwide.
With a tea-bagging capacity of 3 million tea bags per day, its production plant is certified with all modern quality certificates including ISO 22000 and FSSC 22000. Regency’s products are also certified with Halal, Kosher and Organic labels. Commenting on the sale announcement, Gary Seaton, Chairmanof HPL and Lotus Renewable said, “The combination of these two companies — Regency and Lotus — within the folds of the HPL business ecosystem enables to scale, portfolio, selling and distribution capabilities to leverage competition in the race for excellence in the Sri Lankan tea industry,”
“With a large portfolio of brands and being a leading tea export business, Regency has the ability to satisfy any tea connoisseur’s need. I am honoured to be one of the leaders of this great expanded team and excited that together we will challenge this industry in a new way,” he added.
Lotus Renewable Energy Group acquired HPL in a Rs.1.7 billion stock market deal in 2019. HPL is now a group company of Lotus, the Sri Lankan subsidiary of G&G Singapore.