Colombo stock market ends strong with Expolanka developments
Trading at the Colombo Stock Exchange (CSE) was notably heavy on Friday with the 30 per cent stake in Expolanka Holdings sold to a Japanese logistics firm.
The Expolanka Holdings family shifted its stake in the company by selling 30 per cent to S.G. Holdings Ltd, a holding company of a Japanese freight company Sagawa Group. This contributed Rs.6, 275.3 million to the day’s turnover. Expolanka has a total of 1,954.9 million shares in issue.
SG Holdings entered into an agreement with the top five shareholders of Expolanka Holdings to buy a 30 per cent stake of the company for a purchase consideration of US$49 million. Picture shows from left - Hanif Yusoof, Group CEO/Director, Expolanka Holdings; Osman Kassim, Chairman, Expolanka Holdings; Naosuke Kawasaki – Managing Director, Sagawa Holdings Global, Singapore and Nobuaki Kondo – Representative Director, Sagawa Holdings, Japan exchanging the share purchase agreements.
Trading during the week was relatively positive except on Tuesday when heavy stocks losing ground. But net foreign buying was evident this week.
A notable announcement by the Carson Cumberbatch group was the decision of the company to de-list its plantation companies Shalimar (Malay), Selinsing, Good Hope and Indo Malay.
The company’s Chairman H. Selvanathan had stated that the “majority shareholder does not have any intention of diluting its holding nor does the company intend to issue further shares in order to conform to the said Rule, and as such the company is considering the option of de-listing from the Colombo Stock Exchange which would be done in consultation with the Regulator and required shareholder approval.”
Browns Investments PLC sold its entire shareholding in Seylan Bank to Lanka Orix Leasing Company (LOLC). In a stock exchange filing Browns Investments stated that the company had disposed of 11, 988, 208 non-voting shares, which is its entire shareholding, held in Seylan Bank PLC for a total consideration of Rs.479, 928, 320 to LOLC on Tuesday to LOLC. Browns Investments is a subsidiary of LOLC.
Meanwhile, Richard Peiris announced that its initial issue of 30 million debentures was oversubscribed at the face value of Rs.100 each. The company stated they had received applications for over Rs.3.5 million for the initial issue of 30 million debenture issue and accordingly the issue has been oversubscribed.
In another announcement on Friday, Dawi Investment Trust has upped its stake in Arpico Finance Co. Plc to 10.08 per cent of the issued capital at the company as of May 2.
Further, the Kotagala Plantations PLC has offered a debenture issue of 5 million rates, secured, redeemable debentures at an issue price of Rs.100 each with the option to issue up to a further 5 million debentures if oversubscribed. The debenture issue would be opened on May 22.