18MN crossing booms the turnover today

opfdo · 1 18MN crossing booms the turnover today Tue Feb 28, 2012 12:28 pm

opfdo

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who would be. crossing went 115/-

opfdo · 2 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 12:29 pm

opfdo

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again 26mn

Leo · 3 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 12:31 pm

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wow. who could be?

Gaja · 4 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 12:36 pm

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SLIC General Fund 26,032,575
SLIC Life Fund 18,000,000 as at 31.12.2011

chamith · 5 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 12:38 pm

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18MN crossing booms the turnover today Captur33

Last edited by chamith on Tue Feb 28, 2012 12:40 pm; edited 1 time in total

rijayasooriya · 6 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 12:39 pm

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SPEN :- 44,032,575mn of shares at price of 115=Rs5,063,746,048/=

Gaja · 7 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 12:41 pm

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If the SLIC able to find a buyer either Foreigner or 3rd party local then can consider as a real turnover.

greedy · 8 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 12:44 pm

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Mandatory offer price is 112.83 by Melstacorp! Interestingly traded at 115.00. Could it be MELSTACORP buying at 115 Or some foreign funds?

Trend · 9 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 12:45 pm

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Its a foreign buyer. Source- capital trust

Gaja · 10 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 12:46 pm

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greedy wrote:Mandatory offer price is 112.83 by Melstacorp! Interestingly traded at 115.00. Could it be MELSTACORP buying at 115 Or some foreign funds?

I also in the idea that i could be bought by Melstacorp from SLIC, if its a foreign fund then it will be interested to watch. 10% of the Spence Capital

greedy · 11 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 1:15 pm

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Gaja wrote:

greedy wrote:Mandatory offer price is 112.83 by Melstacorp! Interestingly traded at 115.00. Could it be MELSTACORP buying at 115 Or some foreign funds?

I also in the idea that i could be bought by Melstacorp from SLIC, if its a foreign fund then it will be interested to watch. 10% of the Spence Capital

Foreign Buy does not mean Foreign Fund... coz I think HJ has companies registered in BVI. Am I correct?

Gaja · 12 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 1:40 pm

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greedy wrote:

Gaja wrote:

greedy wrote:Mandatory offer price is 112.83 by Melstacorp! Interestingly traded at 115.00. Could it be MELSTACORP buying at 115 Or some foreign funds?

I also in the idea that i could be bought by Melstacorp from SLIC, if its a foreign fund then it will be interested to watch. 10% of the Spence Capital

Foreign Buy does not mean Foreign Fund... coz I think HJ has companies registered in BVI. Am I correct?

Yes all the major companies have companies have registered companies outside Sri Lanka!

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Feb 28, 2012 (LBO) - Melstacorp Limited, a unit of Distilleries Corporation of Sri Lanka, has bought a 10.8 percent stake in Aitken Spence from state-run Sri Lanka Insurance Corporation, sources close to the deal said.

The 5.0 billion rupee deal went through two off market transactions 2.99 billion rupees and 2.07 billion rupees at 115 rupees.
Melstacorp has already made an offer to buyout other shareholders after triggering a 30 percent ownership threshold in Aitken Spence.

Brokers say the latest purchase will push up offer price which was at 112.83 to 115 rupees.
http://www.lbo.lk/fullstory.php?nid=787293325

raa · 14 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 2:03 pm

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SLIC is exiting the market?

sapumal · 15 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 2:13 pm

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Will this purchasing lead to another mandatory offer ?

greedy · 16 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 2:50 pm

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SLIC's profit from the deal.....

Sale Proceeds for 44,032,575 shares LKR5,064mn
Cost of investment LKR4,631mn
Profit from the Investment LKR433mn

That is a 9.35% return on cost....

If we look at the individually; I mean LIFE and General

LIFE Fund

Sale Proceeds from 18,000,000 Shares LKR2,070mn
Cost of Investment LKR4,161mn
Loss from the Disposal (LKR2,091mn)

General

Sale Proceeds from 26,032,575 shares LKR2,994mn
Cost of investment LKR469mn
Profit from the disposal LKR2,525mn

SLIC General had 2,935,505 shares at a cost of LKR794mn. During 2010 after the share split there holding changed to 44,032,575. Out of this 44mn shares, 18 mn shares have been transferred to SLIC LIFE in 2010 at a cost of LKR4,161mn...

Therefore it appears SLIC LIFE had a bad loss from this deal.

Any comments???

Gaja · 17 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 2:53 pm

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sapumal wrote:Will this purchasing lead to another mandatory offer ?

I don't think so, but the existing mandatory offer price will go up if i am not mistaken

WildBear · 18 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 2:58 pm

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greedy wrote:SLIC's profit from the deal.....

Sale Proceeds for 44,032,575 shares LKR5,064mn
Cost of investment LKR4,631mn
Profit from the Investment LKR433mn

That is a 9.35% return on cost....

If we look at the individually; I mean LIFE and General

LIFE Fund

Sale Proceeds from 18,000,000 Shares LKR2,070mn
Cost of Investment LKR4,161mn
Loss from the Disposal (LKR2,091mn)

General

Sale Proceeds from 26,032,575 shares LKR2,994mn
Cost of investment LKR469mn
Profit from the disposal LKR2,525mn

SLIC General had 2,935,505 shares at a cost of LKR794mn. During 2010 after the share split there holding changed to 44,032,575. Out of this 44mn shares, 18 mn shares have been transferred to SLIC LIFE in 2010 at a cost of LKR4,161mn...

Therefore it appears SLIC LIFE had a bad loss from this deal.

Any comments???

Once the public was questioning the state funds(EPF,ETF,SLIC) purchase of overvalued stocks like SPEN,BLUE,TESS,LGL , State fund guru's and some other gurus were arguing that those investments were meant for long term and hence no much implication of market price fluctuation in short run, which is of cause a valid argument. But again transaction like this is not on par with their preach above. How can they explain this transaction. Did the fund managers get some tips from Harry J ? Evil or Very Mad

greedy · 19 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 2:59 pm

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However, the initial cost of investment for 2,935,505 shares is LKR794mn (as per 2009 annual report). therefore total profit on the deal for SLIC is LKR4,270 (LKR5064mn-LKR794mn) = LKR4,270mn. I guess part of the profit booked in 2010 when they transferred 18mn shares to SLIC LIFE.

greedy · 20 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 3:16 pm

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Refer the below link for SLIC LIFE's Purchase from the SLIC General 2010.

In an in-house deal Sri Lanka Insurance Corporation’s (SLIC) Life Fund yesterday bought a 4.4% stake in Aitken Spence Plc for Rs. 4.1 billion from the General Fund.

http://www.ft.lk/2010/10/11/sri-lanka-insurance-life-fund-buys-4-4-spence-stake-from-general-fund-for-rs-4-b/

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SLIC books hefty Rs. 4 b capital gain as an eager Harry secures large block; Ups control to 40.8%; Melstacorp to revise Spence mandatory offer price to Rs. 115 per share from Rs. 113.
Business tycoon Harry Jayawardena-linked Melstacorp Ltd. yesterday acquired a strategic block of an 11% stake in Aitken Spence Plc for Rs. 5 billion, paying a price above that of the ongoing mandatory offer.

Melstacorp, a fully-owned subsidiary of Distilleries Company, bought a 10.8% stake or 44.03 million shares at Rs. 115 each (Rs. 2.17 above the mandatory offer price of Rs. 112.83) in a deal worth Rs. 5.06 billion from Sri Lanka Insurance Corporation (SLIC).

Analysts said the above mandatory offer price suggests that Harry was eager to clinch SLIC’s stake, which incidentally was acquired when the Distilleries-involved consortium owned and managed the insurance giant.

Some estimated that the actual cost for SLIC was around Rs. 18 to 20 per share, which means it booked around Rs. 4 billion profit from the sale. SLIC held the stake via General fund (6.4%) and Life fund (4.43%).

With yesterday’s acquisition, Harry now controls around 40.8% stake in Spence. The next remaining block is a 7% stake held by EPF. The control is via Distilleries (28%) and Milford Exports along with Stassen Exports (2%) in addition to Melstacorp’s 11% acquired yesterday.

Net asset per share of Spence at Company level is Rs. 23.66 and at Group level it is Rs. 57. Spence’s forward PE is 13 times and price to book value is two times.

The buy by Melstacorp however was in line with current market price. Spence closed last week at Rs. 116, up by Rs. 2 from the previous week. Yesterday it began trading at Rs. 119.90 (intra-day highest) whilst prior to the mega crossing of 44 million shares, a few blocks went at Rs.115 level before closing at Rs. 115.50.

As exclusively reported by the Daily FT on Monday, foreign funds have of late stepped up buying into Aitken Spence. They picked up a 1% stake for Rs. 516 million last week.

Distilleries at company level had revenue reserves of Rs. 25 billion as at 31 December 2011, up from 21.7 billion as at March 2011 and Rs. 16.8 billion as at December 2010. Its recent major investment (via Melstacorp) was a 3.2% stake in JKH, currently worth Rs. 4.76 billion.

Last week Melstacorp acquired a 9% stake in Lanka Milk Foods for Rs. 350 million, thereby increasing Harry’s control to 52% and a mandatory offer is pending.
http://www.ft.lk/2012/02/29/harrys-melstacorp-buys-11-more-in-spence-for-rs-5-b/

Gaja · 22 Re: 18MN crossing booms the turnover today Wed Feb 29, 2012 8:52 am

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Given its sheer size, the deal involving SLIC and Melstacorp on Spence had its share of broker battle as well, the Daily FT learns.
There had been several brokers who either showed the quantity in full or parts or were firming up already. Some had been asked for a higher price by the seller as well.
However, akin to a directive from the sky, the deal was eventually done on a shared basis between Sommerville and John Keells Stock Brokers, much to the chagrin of those who sweated previously or almost had the deal.
Spence trades were done via two blocks – 26 million shares and 18 million shares each with JKSB as the buying broker and Sommerville doing the selling.

http://www.ft.lk/2012/02/29/broker-battle-for-big-deal/

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18MN crossing booms the turnover today

1 18MN crossing booms the turnover today Tue Feb 28, 2012 12:28 pm

opfdo

2 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 12:29 pm

opfdo

3 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 12:31 pm

Leo

4 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 12:36 pm

Gaja

5 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 12:38 pm

chamith

6 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 12:39 pm

rijayasooriya

7 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 12:41 pm

Gaja

8 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 12:44 pm

greedy

9 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 12:45 pm

Trend

10 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 12:46 pm

Gaja

11 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 1:15 pm

greedy

12 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 1:40 pm

Gaja

13 Higher Control - Sri Lanka Distilleries ups stake in Spence Tue Feb 28, 2012 1:43 pm

sriranga

14 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 2:03 pm

raa

15 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 2:13 pm

sapumal

16 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 2:50 pm

greedy

17 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 2:53 pm

Gaja

18 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 2:58 pm

WildBear

19 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 2:59 pm

greedy

20 Re: 18MN crossing booms the turnover today Tue Feb 28, 2012 3:16 pm

greedy

21 Harry’s Melstacorp buys 11% more in Spence for Rs. 5 b Wed Feb 29, 2012 4:00 am

sriranga

22 Re: 18MN crossing booms the turnover today Wed Feb 29, 2012 8:52 am

Gaja

23 Re: 18MN crossing booms the turnover today

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