Sri Lanka’s Hayleys Acquires 10.83% Stake in DIMO, Strengthening Strategic Partnership
ECONOMYNEXT – Hayleys PLC, one of Sri Lanka’s leading diversified conglomerates, has made a notable move by acquiring a 10.83% stake in Diesel and Motor Engineering PLC (DIMO), a prominent player in Sri Lanka’s automotive and engineering sectors. According to a stock exchange filing, Hayleys now holds 10.83% of the total shareholding in DIMO, a transaction that significantly alters the company’s positioning within the Sri Lankan market.
A Strategic Investment in DIMO
Before this acquisition, Hayleys had no shares in DIMO, highlighting the strategic nature of this investment. The decision to acquire the stake comes at a time when both companies look to consolidate their strengths in industries such as automotive, engineering, and infrastructure. DIMO has built a strong reputation over the years as a leader in the automotive sector, particularly known for its sale of vehicles, spare parts, and providing after-sales services across Sri Lanka. It also plays a major role in engineering solutions, serving key sectors such as agriculture, construction, and transportation.
Strengthening Ties Between Hayleys and DIMO
The acquisition strengthens the ties between the two companies, with Hayleys’ co-chairman, Mohan Pandithage, already serving on the board of DIMO. Pandithage’s involvement on DIMO’s board, along with other founding family members, further aligns the interests of both companies, providing the potential for greater collaboration moving forward. As a result, Hayleys stands to benefit from DIMO’s market expertise and established leadership in the automotive and engineering industries.
Expanding Growth Opportunities
For DIMO, this new relationship with Hayleys introduces a new avenue for growth, possibly enhancing its operational capacity and expanding its market reach. Hayleys, in turn, is set to strengthen its foothold in these key sectors, reinforcing its position in Sri Lanka’s growing automotive market.
Synergies to Drive Innovation and Growth
This strategic move marks a significant development for both Hayleys and DIMO, which are expected to leverage synergies to drive growth and innovation in their respective industries.
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