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Wednesday, January 26, 2011

Proceeds of Platinum sale to be invested in commodities- ERI official

The proceeds of the sale of platinum shares by the Environment Resources Limited (ERL), one of the investments of Environmental Resources Investment PLC (ERI) will be invested in commodities, a top company official told the Daily Mirror Business.

"We are currently looking at investments in commodities both locally and internationally" the official speaking on the grounds of anonymity said.

Two days back ERI officially announced the sale of Rs.4.5 billion worth of Eastern Platinum Company shares held by ERL in the Toronto Stock Exchange. ERL is a company incorporated in the British Virgin Isles (BVI) and a part of ERI investments.

At present ERI holds a 24% stake of ERL (BVI). ERI has an agreement to purchase the entirety of ERL for a maximum price of $76 million. The 100% stake is to be acquired via payment of seven more tranches by end 2012 with cash inflow from Warrants.

ERL also has two other investments-Ferrox Holdings Limited and Mukuba Resources Limited- which are to be disposed of in time to come, the official said.

The other investments of ERI are DNH Financials (100% holding), South Asia Textile Industries Lanka (Pvt) Ltd (8% holding), Ceylon Leather Products PLC (72% holding), Dankotuwa Porcelain PLC (58% holding) and the Colombo Pharmacy PLC (66% holding). Investments in Preference shares are Olancom (Pvt) Ltd and Enterprise Technologies (Pvt) Ltd.

source - www.dailymirror.lk