08th May 2010, www.e-bizsrilanka.com
Calamander Group Pte, a Singapore-based investment company, has plans to create the first private equity fund in Sri Lanka. The private equity fund is designed to achieve high capital growth (with a targeted internal rate of return of 30%) by buying companies that ride the commodity boom, Calamander posted in its website.
Calamander plans to invest US $50 million which would comprise a major 40 percent in tea, 25 percent in rubber, 20 percent in ceramic and the balance 15 percent in coconut businesses.
‘An export-oriented commodity based private fund is the most risk averse play on the Sri Lanka growth story. The group believes that although the security political risks remain, the macroeconomic backbone of the Sri Lankan economy remains fundamentally attractive for the next five to ten years,’ the company said.
In the tea and rubber industries, Calamander plans to buy a number of tea/rubber factories in a specific district to gain economies of scale and also buy a tea trading house to distribute production. In the ceramic and coconut sector Calamander will develop new strategies for growth and operate as a medium sized player, the company outlined in its website.
‘Calamander selects investments by applying well tested investment models. We focus on companies that have strong growth prospects, with a special emphasis on sectors where Sri Lanka has a global competitive advantage,’ the website added.
Showing posts with label Calamander. Show all posts
Showing posts with label Calamander. Show all posts
12 May 2010
13 November 2009
Mobius For Private Equity Investments in Sri Lanka, says Mark Mobius, chairman of Templeton Asset Management Ltd
13th November 2009, www.bloomberg.com, By Anusha Ondaatjie
Mark Mobius, chairman of Templeton Asset Management Ltd., is seeking private equity or strategic investments in Sri Lanka after the end of the island’s civil war.
“The end of the war is a key positive factor,” Mobius, who oversees about $25 billion of emerging market assets, said
in a telephone interview from the capital Colombo. “We’ve been here for over 15 years and are pretty familiar with the situation.”
Mobius said he planned new investments in Sri Lanka through Templeton’s Strategic and Frontier Markets funds, instead of setting up a private equity fund focused on the $41 billion island economy. Templeton had earlier this year made a “major purchase of government bonds,” he added.
Sri Lanka’s Colombo All-Share Index has risen 98 percent this year, making it Asia’s best performer, after the end of a 26-year civil war in May. The island-nation’s benchmark was the region’s third-worst performer in the past two years as record spending on defense strained government finances.
Sri Lanka’s economic growth may accelerate to between 7 percent and 8 percent next year, from 4 percent in 2009, as the island rebuilds after the Tamil Tiger rebels ended their quest for a separate homeland, deputy finance minister Sarath Amunugama said Nov. 9.
The International Monetary Fund said this week the release of a second payment in its $2.6 billion loan to Sri Lanka indicates a strong performance and fiscal commitment from the South Asian island economy.
Liquidity
“On the equity side, liquidity is not very good,” Mobius said, adding that he may not increase his stakes in Sri Lankan listed firms, including John Keells Holdings Plc, the island’s biggest diversified company.
Mobius said there are opportunities in Sri Lanka’s plantations, property, hotels and fast-moving consumer goods industries.
“We haven’t yet made any major decisions,” he added.
Emerging markets have become significant alternatives for global investors because they offer “potentially higher returns,” Mobius wrote in a report in September.
Calamander Group Pte, a Singapore-based investment company, said in June it plans to invest between $50 million and $75 million in the island nation’s rubber, tea, timber, coconut, bank and ceramics businesses, creating the first private equity fund focused on Sri Lanka. Leopard Capital LP, which manages a fund in Cambodia, plans to start investing in Sri Lanka, the private equity firm said in September.
Investor Jim Rogers, who correctly predicted a commodity price rally in 1999, said in June he sees “wonderful opportunities” in Sri Lanka, while HSBC Private Bank said the country could become the “Hong Kong of India,” after the war ended.
To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net
Mark Mobius, chairman of Templeton Asset Management Ltd., is seeking private equity or strategic investments in Sri Lanka after the end of the island’s civil war.
“The end of the war is a key positive factor,” Mobius, who oversees about $25 billion of emerging market assets, said
in a telephone interview from the capital Colombo. “We’ve been here for over 15 years and are pretty familiar with the situation.”Mobius said he planned new investments in Sri Lanka through Templeton’s Strategic and Frontier Markets funds, instead of setting up a private equity fund focused on the $41 billion island economy. Templeton had earlier this year made a “major purchase of government bonds,” he added.
Sri Lanka’s Colombo All-Share Index has risen 98 percent this year, making it Asia’s best performer, after the end of a 26-year civil war in May. The island-nation’s benchmark was the region’s third-worst performer in the past two years as record spending on defense strained government finances.
Sri Lanka’s economic growth may accelerate to between 7 percent and 8 percent next year, from 4 percent in 2009, as the island rebuilds after the Tamil Tiger rebels ended their quest for a separate homeland, deputy finance minister Sarath Amunugama said Nov. 9.
The International Monetary Fund said this week the release of a second payment in its $2.6 billion loan to Sri Lanka indicates a strong performance and fiscal commitment from the South Asian island economy.
Liquidity
“On the equity side, liquidity is not very good,” Mobius said, adding that he may not increase his stakes in Sri Lankan listed firms, including John Keells Holdings Plc, the island’s biggest diversified company.
Mobius said there are opportunities in Sri Lanka’s plantations, property, hotels and fast-moving consumer goods industries.
“We haven’t yet made any major decisions,” he added.
Emerging markets have become significant alternatives for global investors because they offer “potentially higher returns,” Mobius wrote in a report in September.
Calamander Group Pte, a Singapore-based investment company, said in June it plans to invest between $50 million and $75 million in the island nation’s rubber, tea, timber, coconut, bank and ceramics businesses, creating the first private equity fund focused on Sri Lanka. Leopard Capital LP, which manages a fund in Cambodia, plans to start investing in Sri Lanka, the private equity firm said in September.
Investor Jim Rogers, who correctly predicted a commodity price rally in 1999, said in June he sees “wonderful opportunities” in Sri Lanka, while HSBC Private Bank said the country could become the “Hong Kong of India,” after the war ended.
To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net
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