Colombo, 02 September 2026 – Eastern Merchants PLC (EMP), a distinguished entity established in 1943 and listed on the Colombo Stock Exchange (CSE), today announced a significant non-current related party transaction. The company has invested Rs. 262 million in ordinary shares of Eastern Harvest (Pvt) Limited (EHPL), its wholly-owned subsidiary.
The strategic investment, formally communicated to the CSE, underscores EMP’s continued commitment to strengthening its group structure and operational capabilities. Eastern Harvest (Pvt) Limited is a 100% owned subsidiary of Eastern Merchants PLC, making this transaction an intra-group capital injection.
Details of the Investment
The investment amounts to a total of Rs. 262,000,000 (Two Hundred Sixty-Two Million Rupees) for the purchase of 26,200,000 (Twenty-Six Million Two Hundred Thousand) voting ordinary shares in Eastern Harvest (Pvt) Limited. These shares were acquired at par value, a price noted to be close to the net asset value of the subsidiary.
Key dates pertaining to the transaction are as follows:
- Date of Share Issue: 26th March 2025
- Filing with Registrar of Companies (ROC): 19th August 2026
- Transaction Registered by ROC: 24th August 2026
Related Party Transaction Review Committee Assessment
In adherence to corporate governance standards, the Related Party Transaction Review Committee (RPTC) of Eastern Merchants PLC thoroughly reviewed the investment. The RPTC concluded that the transaction was conducted on normal commercial terms and is not prejudicial to the interests of the Entity or its minority shareholders. Consequently, the RPTC determined that obtaining an opinion from an independent expert was not required prior to forming its view on the transaction.
The aggregate value of all non-current Related Party Transactions for the current financial year stands at Rs. 262,000,000. Furthermore, the aggregated related party transaction specifically with Eastern Harvest (Pvt) Limited also amounts to Rs. 262,000,000, reflecting the singular nature of this substantial investment within the reporting period.
This investment is expected to bolster the financial foundation and operational capacity of Eastern Harvest (Pvt) Limited, aligning with the broader strategic objectives of Eastern Merchants PLC.
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