DFCC Bank supports Watawala Tea Ceylon Limited’s leveraged acquisition financing of Daintee Limited
September 22, 2020
DFCC Bank PLC completed the acquisition financing for Watawala Tea Ceylon Limited a 100% owned subsidiary of Sunshine Holdings, one of the most established corporate entities in Sri Lanka. Watawala Tea Ceylon Limited acquired a leading Sri Lankan confectionery company Daintee Limited, adding several brands to its portfolio including Daintee, Milady and Bensons. The transaction was valued at Rs 1.7 billion. The term loan of Rs 1.6 billion was structured by DFCC Bank to finance the acquisition. DFCC has been involved in large scale transactions with both the private and public sector during the last 12 months and is a preferred Bank for long-term financing for Corporates.
The acquisition of Daintee Limited comes at a time where Sunshine as a Group looks to selectively expand its presence in Sri Lanka’s fast-growing FMCG segment by extending its portfolio beyond tea. Daintee joins Sunshine Consumer’s growing portfolio of businesses that markets and distributes some of the country’s most-loved tea brands. The acquisition is in line with the Group’s strategy to nurture and build local brands.
DFCC Bank Director and CEO Lakshman Silva commented, “DFCC Bank is delighted to support and partner Watawala Tea Ceylon Limited in structuring and arranging this unique two tiered facility which comprises of guarantee and term loan facilities. This transaction stands as a further testament to our ability in closing large transactions, and our strong and continued commitment to our stakeholders.
DFCC Bank Senior Vice President and Head of Corporate Banking Shamindra Marcelline stated, “This is a landmark transaction by the Bank for an important corporate banking client. The transaction marks another significant achievement, especially given prevailing market conditions which is conducive for strategic mergers and acquisitions. Congratulations to Watawala for leading the way. This transaction also highlights our capabilities in acquisition financing which is a key corporate banking initiative.
About the Bank: DFCC Bank is a fully-fledged commercial bank offering the full range of commercial and development banking services. The Bank was also ranked amongst Business Today’s Top 30 businesses in Sri Lanka and was placed in the 25th position in Brand Finance Top 100 most Valuable Brands, 2019. DFCC Bank is rated A+(lka) Stable by Fitch Rating Lanka Limited.
Mr. Lakshman Silva Director & CEO, DFCC Bank (4th from left) handing over a memento to mark the occasion to Mr. Vish Govindasamy, Group Managing Director, Sunshine Holdings (3rd from left)
Also the following officials are in the picture,
From Left to Right – Aruna Deepthikumara, Group CFO Sunshine Holdings, Shyam Sathasivam – Managing Director – Watawala Tea Ceylon Limited, Shamindra Marcelline, Senior Vice President Corporate Banking DFCC Bank, Palan Rajanathan, Vice President Corporate Banking DFCC Bank, Vindula Dharmasena, Relationship Manager Corporate Banking, DFCC Bank and Sumudu Abeygunasekara, Assistant Vice President Corporate Banking DFCC Bank