Possibility of RHL takeover

I believe today RHL crossing seller is Mrs.I.R.Rajiyah. So with this lot Renuka group holding came less that 50%. There may be chance for new company to enter into the management as its value is above than mkt value. If it happens it should fly for significant amount. This the turning point of that valuable company...Possibility for SLIC spreading its wing inside RHL as it hold 5%.

Jana1 wrote:I believe today RHL crossing seller is Mrs.I.R.Rajiyah. So with this lot Renuka group holding came less that 50%. There may be chance for new company to enter into the management as its value is above than mkt value. If it happens it should fly for significant amount. This the turning point of that valuable company...Possibility for SLIC spreading its wing inside RHL as it hold 5%.

What is going on with RHL?

Jana1 wrote:I believe today RHL crossing seller is Mrs.I.R.Rajiyah. So with this lot Renuka group holding came less that 50%. There may be chance for new company to enter into the management as its value is above than mkt value. If it happens it should fly for significant amount. This the turning point of that valuable company...Possibility for SLIC spreading its wing inside RHL as it hold 5%.

I wonder who gave -rep for this post.?? Anyway interesting observation. I give +rep to you.

As discussed above two crossings took place at Rs. 65.50 around 1.40pm today. Total number of shares is 1,863,000. (791,000 and 1,072,000)

Anyway interesting situation. As per the following extract from the quarterly accounts as at 30.06.2011 major holdings are as follows.

Renuka Group--------------24,000,000----- 54.86%
SLIC-----------------------2,500,000------5.71%
NSB------------------------2,349,800------5.37%
Mrs. S.V.Rajiyah------------1,576,155-------3.60%
Mr. Teruaki Ono------------1,015,000-------2.32%

So wonder who were involved in this crossing. Why would directors shed there shares?

1.0 Total number involved 1,863,000 shares. However Mrs. S.V Rajiyah holds only 1,576,155 shares. Who shed the holding? NSB? SLIC? Renuka Group?

2.0 What would be the rational?

3.0 Who is the purchaser?

Anyway something is going on with RHL.

Jana1, you have given a good point. But I don't know who has given you -Rep. Let's wait and see who is collecting.

it is one of another undervalue share in cse
it was record EPS for year end 31.03.2011 as 14.50
but,
this Q result is just down compare to same period of previous year(other income is minus for this Q),

net assets value per share 36 as at 30.06.2011
c & ce is good(290m)
main revenues from agri,distribution

if i wrong,pls indicate me what is wrong, it will help me for next post

Jana1 wrote:I believe today RHL crossing seller is Mrs.I.R.Rajiyah. So with this lot Renuka group holding came less that 50%. There may be chance for new company to enter into the management as its value is above than mkt value. If it happens it should fly for significant amount. This the turning point of that valuable company...Possibility for SLIC spreading its wing inside RHL as it hold 5%.

People seriously do not abuse your reps. I do not see why this post deserves a - rep.

Jana1,

I believe all the Rajiahs sold bulk of their shares before today. So it will be interesting to see who sold. The Renuka Group?


SV sold 1.5 mill in august

SR,IR,Sv sold a 1 million in july.

Yes something is going on. Still to figure directors selling is a postive or a negative. RHL is forbes recognized company now, with a good growth potential. Hope this mystery will be uncovered soon.

Anyway I hold RHL shares.

ABEST wrote:it is one of another undervalue share in cse
it was record EPS for year end 31.03.2011 as 14.50
but,
this Q result is just down compare to same period of previous year(other income is minus for this Q),

net assets value per share 36 as at 30.06.2011
c & ce is good(290m)
main revenues from agri,distribution

if i wrong,pls indicate me what is wrong, it will help me for next post

One reason their profit was comparatively down this quarter was that their Portfolio value at market prices was down. They every quarter take this into consideration.

Also from report

"Total expenses in terms of administration, selling, distribution and finance increased due to this
being the first full quarter where Shaw Wallace Ceylon Limited and its subsidiaries were
consolidated as part of the Renuka Group."

nkalansu wrote:

Jana1 wrote:I believe today RHL crossing seller is Mrs.I.R.Rajiyah. So with this lot Renuka group holding came less that 50%. There may be chance for new company to enter into the management as its value is above than mkt value. If it happens it should fly for significant amount. This the turning point of that valuable company...Possibility for SLIC spreading its wing inside RHL as it hold 5%.

I wonder who gave -rep for this post.?? Anyway interesting observation. I give +rep to you.

As discussed above two crossings took place at Rs. 65.50 around 1.40pm today. Total number of shares is 1,863,000. (791,000 and 1,072,000)

Anyway interesting situation. As per the following extract from the quarterly accounts as at 30.06.2011 major holdings are as follows.

Renuka Group--------------24,000,000----- 54.86%
SLIC-----------------------2,500,000------5.71%
NSB------------------------2,349,800------5.37%
Mrs. S.V.Rajiyah------------1,576,155-------3.60%
Mr. Teruaki Ono------------1,015,000-------2.32%

So wonder who were involved in this crossing. Why would directors shed there shares?

1.0 Total number involved 1,863,000 shares. However Mrs. S.V Rajiyah holds only 1,576,155 shares. Who shed the holding? NSB? SLIC? Renuka Group?

2.0 What would be the rational?

3.0 Who is the purchaser?

Anyway something is going on with RHL.

I guess u missed some points.
Mr S.V.Rajiyah already got exit from renuka. Please refer Directors dealing.
Renuka Group--------------24,000,000----- 54.86% was on July/2011. after this 1 mn was sold during August. Now 1.86 mn sold. So their holding must be around 48%.
If purchaser is SLIC that should be a positive move. we have to wait untill next report out

slstock wrote:

Jana1 wrote:I believe today RHL crossing seller is Mrs.I.R.Rajiyah. So with this lot Renuka group holding came less that 50%. There may be chance for new company to enter into the management as its value is above than mkt value. If it happens it should fly for significant amount. This the turning point of that valuable company...Possibility for SLIC spreading its wing inside RHL as it hold 5%.

People seriously do not abuse your reps. I do not see why this post deserves a - rep.

Jana1,

I believe all the Rajiahs sold bulk of their shares before today. So it will be interesting to see who sold. The Renuka Group?


SV sold 1.5 mill in august

SR,IR,Sv sold a 1 million in july.


Yes something is going on. Still to figure directors selling is a postive or a negative. RHL is forbes recognized company now, with a good growth potential. Hope this mystery will be uncovered soon.

Anyway I hold RHL shares.

I guess sometimes people believe this post to promote RHL. - Rep may be given by Blue followers who burn their fingers or some one dont know about shares... This is very good share. Still I hold massive qty. it may take time to recover.

Sometimes the auditors advise against directors holding large number of shares due to independance issues. Could that be the reason? I also hold RHL shares at 62.

Applying the valuation method if you look at the average EPS for the past 5 years it is 7 . This is after considering a very low eps of 0.31 in 2008. The share is trading at 9PE it is attractive. The business it is in how ever needs to be followed closely as it is related to fluctuations and investments. But why are the directors selling if the business is very good?

I too hold substantial amount of RHL but now it is a bit of a worry?

suja wrote:Applying the valuation method if you look at the average EPS for the past 5 years it is 7 . This is after considering a very low eps of 0.31 in 2008. The share is trading at 9PE it is attractive. The business it is in how ever needs to be followed closely as it is related to fluctuations and investments. But why are the directors selling if the business is very good?

I too hold substantial amount of RHL but now it is a bit of a worry?

Normally if dirctors get exit from the business, the share price will stagnate at that level. that does not mean the company is going to make lose at all. There may be some other reasons. If new entrants going to enter into the business the existing directors may not be happy with new management, so they may get exit. Or they found better opportunity than this. Last week Mr. abeywickrama bought RHL non voting 10,000 shares around Rs:39.5 and sold at around 37.5 and lost 20,000. So he was expecting this share is going to move up, due to down mkt he got exit and lose around 20000. Another example DIMO, highly under value share, all motors counters were rocketing last month but DIMO still stagnate because of Director selling. If something fundamentally strong then we can hold 10 years bro. Dont worry. Just hold it. Same situation took place with CFLB. When CFLB travelled from 25 to 65, Mr. Senathirajah sold so price stagnated around 65. Then after couple of months it went to 550 level.

Jana1 wrote:Last week Mr. abeywickrama bought RHL non voting 10,000 shares around Rs:39.5 and sold at around 37.5 and lost 20,000. So he was expecting this share is going to move up, due to down mkt he got exit and lose around 20000.

I cannt believe this person's behaviour. If he cannt hold the shares why he wanted to buy at 1st place? This is utter nonsense. Wonder how he become a Director?

Don't be hurry,RHL-KUO

Jana1 wrote:

nkalansu wrote:

Jana1 wrote:I believe today RHL crossing seller is Mrs.I.R.Rajiyah. So with this lot Renuka group holding came less that 50%. There may be chance for new company to enter into the management as its value is above than mkt value. If it happens it should fly for significant amount. This the turning point of that valuable company...Possibility for SLIC spreading its wing inside RHL as it hold 5%.

I wonder who gave -rep for this post.?? Anyway interesting observation. I give +rep to you.

As discussed above two crossings took place at Rs. 65.50 around 1.40pm today. Total number of shares is 1,863,000. (791,000 and 1,072,000)

Anyway interesting situation. As per the following extract from the quarterly accounts as at 30.06.2011 major holdings are as follows.

Renuka Group--------------24,000,000----- 54.86%
SLIC-----------------------2,500,000------5.71%
NSB------------------------2,349,800------5.37%
Mrs. S.V.Rajiyah------------1,576,155-------3.60%
Mr. Teruaki Ono------------1,015,000-------2.32%

So wonder who were involved in this crossing. Why would directors shed there shares?

1.0 Total number involved 1,863,000 shares. However Mrs. S.V Rajiyah holds only 1,576,155 shares. Who shed the holding? NSB? SLIC? Renuka Group?

2.0 What would be the rational?

3.0 Who is the purchaser?

Anyway something is going on with RHL.

I guess u missed some points.
Mr S.V.Rajiyah already got exit from renuka. Please refer Directors dealing.
Renuka Group--------------24,000,000----- 54.86% was on July/2011. after this 1 mn was sold during August. Now 1.86 mn sold. So their holding must be around 48%.
If purchaser is SLIC that should be a positive move. we have to wait untill next report out

To : Jana1

Actually u are right about directors dealings. Mrs. S.V.Rajiyah had sold 1,500,000 shares on 17-08-2011. But Renuka Group still have 54.86% They haven't sold. (As at 30.06.2011 including Mr S.V.Rajiyah, total holdings for the group was 54.86% + 3.60% = 58.46%) So how did you arrive at 48%? Is there anything I missed?

Calculation : Total number of voting shares is 43,750,000. Renuka Group has 24,000,000 shares. So
= 24/43.75*100 = 54.86%
Please correct me if i am wrong.


If indeed today's shedding was done by the Renuka Group then of course there is an interesting situation.
However the most interesting question is that......

* Renuka Holding was selected by FORBES to be the one of the best companies in ASIA under US$ 1.0 Bn

So why the directors are disposing shares? Is there any problem with the group which we haven't detected?

I think the most closet buyer is SLIC. Tourism is the next big thing for RHL and they will need some guidance from a cash rich company. At the same time SLIC is quite keen on investing in tourism. So this would be an ideal combination.
Few weeks ago we saw similar joint venture between RHL & Mclarens holding to enter into the Lubricant market in Sri Lanka.

RHL is one of the fastest growing listed businesses with attractive price level. RHL used to be an investment fund but slowly turning into diversified company.

SLIC entered to RHL in later 2010 and share price was about Rs 60.50. So cannt imagine they sold the shares. NSB asset management division is also in collecting mode. Renuka Group(indirect) is the possible seller. If so Renuka group now have slightly over 50% RHL voting shares.

I think this is the last time we see Renuka group sells RHL shares.

nkalansu wrote:

Jana1 wrote:

nkalansu wrote:

Jana1 wrote:I believe today RHL crossing seller is Mrs.I.R.Rajiyah. So with this lot Renuka group holding came less that 50%. There may be chance for new company to enter into the management as its value is above than mkt value. If it happens it should fly for significant amount. This the turning point of that valuable company...Possibility for SLIC spreading its wing inside RHL as it hold 5%.

I wonder who gave -rep for this post.?? Anyway interesting observation. I give +rep to you.

As discussed above two crossings took place at Rs. 65.50 around 1.40pm today. Total number of shares is 1,863,000. (791,000 and 1,072,000)

Anyway interesting situation. As per the following extract from the quarterly accounts as at 30.06.2011 major holdings are as follows.

Renuka Group--------------24,000,000----- 54.86%
SLIC-----------------------2,500,000------5.71%
NSB------------------------2,349,800------5.37%
Mrs. S.V.Rajiyah------------1,576,155-------3.60%
Mr. Teruaki Ono------------1,015,000-------2.32%

So wonder who were involved in this crossing. Why would directors shed there shares?

1.0 Total number involved 1,863,000 shares. However Mrs. S.V Rajiyah holds only 1,576,155 shares. Who shed the holding? NSB? SLIC? Renuka Group?

2.0 What would be the rational?

3.0 Who is the purchaser?

Anyway something is going on with RHL.

I guess u missed some points.
Mr S.V.Rajiyah already got exit from renuka. Please refer Directors dealing.
Renuka Group--------------24,000,000----- 54.86% was on July/2011. after this 1 mn was sold during August. Now 1.86 mn sold. So their holding must be around 48%.
If purchaser is SLIC that should be a positive move. we have to wait untill next report out

To : Jana1

Actually u are right about directors dealings. Mrs. S.V.Rajiyah had sold 1,500,000 shares on 17-08-2011. But Renuka Group still have 54.86% They haven't sold. (As at 30.06.2011 including Mr S.V.Rajiyah, total holdings for the group was 54.86% + 3.60% = 58.46%) So how did you arrive at 48%? Is there anything I missed?

Calculation : Total number of voting shares is 43,750,000. Renuka Group has 24,000,000 shares. So
= 24/43.75*100 = 54.86%
Please correct me if i am wrong.


If indeed today's shedding was done by the Renuka Group then of course there is an interesting situation.
However the most interesting question is that......

* Renuka Holding was selected by FORBES to be the one of the best companies in ASIA under US$ 1.0 Bn

So why the directors are disposing shares? Is there any problem with the group which we haven't detected?

As per June qtr report u right.
After that go and chk deals by directors.
Mr.S.V.Rajiah got exit on 17/8.
Remainig holding is: (24+0.5-1.86)/43.75=52.6%. (583330 shares hold by joint account)
SO still 1 more million can be sold to reach 50 %.
Sorry previously I accounted 1 mn shares which was sold on 23/6. That is already accounted in June qtr.
Still they have controlling stake.

UKboy wrote:

Jana1 wrote:Last week Mr. abeywickrama bought RHL non voting 10,000 shares around Rs:39.5 and sold at around 37.5 and lost 20,000. So he was expecting this share is going to move up, due to down mkt he got exit and lose around 20000.

I cannt believe this person's behaviour. If he cannt hold the shares why he wanted to buy at 1st place? This is utter nonsense. Wonder how he become a Director?

He might have got an urge to do what the retailers in CSE do.

Probably. There are lot of undervalued stocks now so he might have thought something else would give him a better return, even after acounting for the 20,000 loss.

ok lets look at stats here

Renuka group had 24 mil shares as at june 30th. That's 54.86%.

If group disposed 1.863 mil shares that's 4.26% roughly.

So group holding is above 50% still. Next move if any is crucial. Let us see.

UKboy wrote:I think the most closet buyer is SLIC. Tourism is the next big thing for RHL and they will need some guidance from a cash rich company. At the same time SLIC is quite keen on investing in tourism. So this would be an ideal combination.
Few weeks ago we saw similar joint venture between RHL & Mclarens holding to enter into the Lubricant market in Sri Lanka.

RHL is one of the fastest growing listed businesses with attractive price level. RHL used to be an investment fund but slowly turning into diversified company.

SLIC entered to RHL in later 2010 and share price was about Rs 60.50. So cannt imagine they sold the shares. NSB asset management division is also in collecting mode. Renuka Group(indirect) is the possible seller. If so Renuka group now have slightly over 50% RHL voting shares.

I think this is the last time we see Renuka group sells RHL shares.

After ur notice, i entered to this counter. Thanks UK boy. I heard that some of unit trust funds are also on collecting side. Holding these type of shares will give reasonable return, but it takes sometime.

Thanks

seyon wrote:

UKboy wrote:I think the most closet buyer is SLIC. Tourism is the next big thing for RHL and they will need some guidance from a cash rich company. At the same time SLIC is quite keen on investing in tourism. So this would be an ideal combination.
Few weeks ago we saw similar joint venture between RHL & Mclarens holding to enter into the Lubricant market in Sri Lanka.

RHL is one of the fastest growing listed businesses with attractive price level. RHL used to be an investment fund but slowly turning into diversified company.

SLIC entered to RHL in later 2010 and share price was about Rs 60.50. So cannt imagine they sold the shares. NSB asset management division is also in collecting mode. Renuka Group(indirect) is the possible seller. If so Renuka group now have slightly over 50% RHL voting shares.

I think this is the last time we see Renuka group sells RHL shares.

After ur notice, i entered to this counter. Thanks UK boy. I heard that some of unit trust funds are also on collecting side. Holding these type of shares will give reasonable return, but it takes sometime.

Thanks

Slow and steady I find better than fast and furious which might give us a health issues if things go wrong.

Renuka Holdings bullish on Agri, Automotive and FMCG

Renuka Holdings PLC (RHL) is on an aggressive expansion and is pursuing value added food and beverage exports, automotive, Fast Moving Consumer Goods (FMCG) food service, portfolio management and property development on the back of the peace dividend, officials said.
Picture of Renuka Agri Foods factory at Wathupitiwela

“We reclassified our business areas this financial year into four key segments in order to forge ahead with our expansion plans. The Renuka Agri Foods PLC group (RAL) heads the agribusiness sector, McShaw Automotive Ltd group the automotive sector, Shaw Wallace Ceylon Ltd group, the FMCG and foodservice sector, while Coco Lanka PLC group is our investment arm (portfolio management and property development).” Shamindra Rajiyah, Executive Director RHL told the Business Times in an interview.

RAL has a most diversified coconut factory in the country at Wathupitiwela off Nittambuwa, utilizing many alternative food processing technologies. Mr. Rajiyah said the company’s agribusiness segment is engaged in plantations, manufacturing and marketing, noting that this firm went public two years ago. “We’re currently commissioning our coconut water production plant and hope to be ready by January 2012. These products will mainly be for exports,” he stated. Mr. Rajiyah said that coconut is Sri Lanka’s third major agricultural export crop and that earnings from this sector accounted for 1.8% of last year’s gross domestic product.

“The demand for value added coconut based products are generated mainly through households, catering industry (hotels, restaurants, caterers) and food manufacturing industries,” he said. RAL manufactures coconut milk, coconut milk powder, granulated de-fatted coconut, etc, while its subsidiaries manufacture organic certified products, tea bags, spices, rice products among many other products, the unique feature being that over 50% of their exports are their own brands. Mr. Rajiyah added that after the coconut water project takes off the ground, RAL will venture into a Greenfield plantation project. “We’re exploring about 5,000 acres of state land and this will be in the East and/ or North Western parts of the island," he explained.

Mr. Rajiyah said that RHL’s automotive segment is the leader with Delphi Lockheed having an 80% share in brake oil market. “Shaw Wallace got together with McLarens Holdings early this year to put together a much larger automotive company – McShaw Automotive. Though this firm, we are in tyres, tubes, lubricants and will go into automobile agencies, etc,” he said. He also added that if there are areas for expansion in auto assembly or any other related fields, McShaw will explore these options as well.

As for RHL buying into Shaw Wallace Ceylon Ltd early this year, Mr. Rajiyah noted that this was a good fit for the company which was looking to acquire a distribution arm at the right value. “Shaw Wallace Ceylon is unique that it has more than 70% of their sales outside the Western province and we supply more than 65,000 outlets directly and some 100,000 outlets indirectly. Further 70% of Shaw Wallace sales are from our own brands.” He said Shaw Wallace Ceylon is a corporate icon, nurtured by a lifetime of trust and conviction among the millions of Sri Lankan’s who grew up with its products.

Shaw Wallace's FMCG brands include Captain and Plaza tinned fish, Sun Gold instant drinks, Rainers colourings and essences, Ranposha breakfast cereal, Milk White laundry soap, Ranwan Venivel herbal soap and agencies such as Ajinomoto flavour enhancer, Supermax shaving products, etc.

“We also recently formed a company called Shaw Wallace Food Services Ltd through Shaw Wallace Ceylon Ltd to establish a fully fledged food services arm,” Mr. Rajiyah said. He said that this was done to benefit from the underlying opportunity of the current tourism boom. He added that they are gearing to set up a manufacturing plant for Shaw Wallace.

Mr. Rajiyah explained that Shaw Wallace has a vast portfolio of brands (some not in use in the recent past) and that the company is on a journey of expansion and growth to extend its product portfolio and unlock brand values. “Today, under Renuka, Shaw Wallace possesses manufacturing capabilities (unlike earlier),” he explained.

Mr. Rajiyah added that RHL will forge ahead with its portfolio management activities, investing in the stock market, private equity projects through Coco Lanka. “We’re also looking to develop our portfolio of properties. We’re initially looking at commercial projects in Colombo,” he added

http://www.sundaytimes.lk/110925/BusinessTimes/bt20.html

It is hard to believe but looks like SLIC is the seller.( If Renuka group had sold shares we would have been seen an announcement on CSE by now).

The more I’m trying to understand their new strategies the more I get frustrated about SLIC investments.

They did not make any decent profits from this RHL deal as they bought the share around 60.50 and sold around 65.

At the same time they bought 5% of COLO shares and paid staggering Rs 480 per share..!!!!

is it worth at 480.00(COLO)