Sampath to sell its broking arm
View(s):Sampath Bank is negotiating with a certain party to sell its stockbroking entity, SC Securities (Pvt) Ltd, according to sources close to the deal. They said that in this deal, Sampath Bank will be selling the broking licence which is valued at Rs. 150 million. SC Securities is a licensed member of the Colombo Stock Exchange (CSE) and according to sources; a trading member of the CSE is buying the company. There’s a difference between a member and a trading member of the CSE.
Members are those who started the CSE and they have the right to vote. In the event of CSE’s demutualisation (the process through which a member-owned company becomes shareholder-owned and made into a public limited company) the members will receive 5 per cent of CSE shares. Trading members aren’t entitled to any of this. There are 15 CSE members and 11 trading members.
In the event the trading member buys SC Securities, its trading licence will cease and the entity will become a full member. Sampath is selling the company as it hasn’t made profits in the past several years. (DEC)