TWC Capital, a leading corporate finance advisory firm under TWC Holdings, successfully served as the sole financial adviser to Hela Apparel Holdings PLC on its divestment of two [02] running garment factories in Mawathagama and Narammala including a freehold property with a warehouse in Uhumeeya to Q Collection Pte Ltd, a Singapore-based investor backed by Bangladeshi interests. TWC Capital successfully managed the structuring of this transaction, considering the complex financial and strategic requirements of Hela Group, by working closely with the Board of Investment (BOI) in order to obtain the regulatory approvals to close the deal.
The fact that this transaction was closed during a time of global uncertainty is a testament to TWC Capital’s experience and understanding of policy and regulatory issues that arise during cross-border transactions. TWC Capital led discussions with the BOI to ensure full regulatory compliance and secured this significant foreign direct investment at a time when Sri Lanka’s apparel exporters are under pressure from global headwinds, including a 44% tariff on US imports affecting around 40% of the country’s garment exports.
In this regard, TWC Capital and Hela received proactive support from the BOI in navigating through a series of complicated agreements to be executed, working according to a tight deadline for transaction close. This transaction therefore sets a benchmark for corporate finance advisory by TWC Capital, considering its policy and regulatory complexity.
This acquisition not only injects much-needed capital into Hela but also underscores the resilience and appeal of Sri Lankan apparel manufacturing assets for long term investors. The fact that the garment factories acquired would focus on European markets was a positive factor and reinforced Sri Lanka’s competitiveness in high-end apparel manufacturing, despite the uncertainty on GSP plus.
Founder and Chairman, TWC Holdings, Thilan Wijesinghe, stated: “This investment reflects continued regional interest in Sri Lanka’s apparel sector and a re-alignment of regional export manufacturing capacity amid shifting global and regional dynamics.” The CEO, TWC Capital, Rasanja Perera, added: “We are pleased to have advised Hela during a pivotal moment. Transactions of this nature not only inject much-needed FDI into the country but also set a precedent for regulatory clarity and investor confidence.”
TWC Capital continues to demonstrate its leadership in facilitating high-value cross-border investments into strategic sectors. The company is also the sole financial advisor to several major corporates in Sri Lanka to raise over USD 100 million in equity and debt from development financial institutions and engaged in several ongoing cross-border M&A transactions.
