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Distilleries transfer Spence stake to Melstacorp - CSE closes virtually flat

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CSE.SAS

CSE.SAS
Global Moderator

The Colombo bourse yesterday closed virtually flat on the All Share Price Index while the Milanka was slightly down on a turnover of Rs.8.08 billion, down from Rs. 1.52 billion the previous day, largely on account of a crossing of over 66.4 million Aitken Spence at Rs.106.60 in a deal worth Rs.7.08 billion.

This transfer was the continuation of the previous day’s transfer of Distilleries Company-held stakes to Melstacorp Limited, its fully owned subsidiary as part of what Distilleries described as an "internal group restructuring process."

Distilleries said in a Stock Exchange filing that the transaction of a stake of 16.36% of Spence was done at Rs.106.60 per share on the trading floor of the Colombo Stock Exchange.

Outside the Spence crossing, nearly 5.5 million Softlogic Holdings was crossed at Rs.12 in a deal worth Rs.65.7 million, brokers said.

Both indices were slightly down – the all Share by 0.44 points (0.01%) and the Milanka by 16.96 points (0.38%) largely on account of a slight drop in index heavy JKH which closed 30 cents down at Rs.190 on million shares traded between Rs.189.20 and Rs.194.90.

The highest business generator on the trading floor was Lion Brewery closing Rs.15 up at Rs.215 on 2.2 million shares done between Rs.207.50 and Rs.215. There was no word on buyers and sellers.

Sampath Bank too closed Rs.2 down at Rs.153 on over 0.1 million shares done between Rs.150.10 and Rs.157 – also contributing to the decline in the Milanka Price Index.

Similarly Carsons was down 60 cents to close at Rs.465.70 on 38,005 shares done between Rs.465.70 and Rs.465.90.

Among other counters that showed volume were Access Engineering up 50 cents to Rs.17.60 on slightly over 0.9 million shares, Blue Diamonds up 10 cents to Rs.4.70 on over 2.4 million shares, Hemas Holdings up 70 cents to Rs.23 on nearly 0.5 million shares and Keells Hotels up 20 cents to Rs.12.20 on over 0.8 million shares.

Commercial Bank too saw over 0.1 million shares traded closing flat at Rs.100 and Seylan Bank (non-voting) over closing 20 cents up at Rs.27 on over 0.2 million shares.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=55378

Rizmi

Rizmi
Manager - Equity Analytics
Manager - Equity Analytics

Sri Lanka Distilleries Corp, transfers assets

Distilleries Corporation of Sri Lanka, has transferred stakes in a hotel and two plantations to a wholly owned subsidiary in a move that will consolidate non-alcohol businesses in a separate unit.

Distilleries Company said it had transferred 54.06 million shares or a 41.7 percent stake in Browns Beach Hotel, to Melstacorp Limited, a fully owned subsidiary.
A 31.03 percent stake in Madulsima Plantations (9.0 million shares) were transferred at 9.10 rupee and a 43.15 percent stake in Balangoda Plantation (10.2 million shares) were transferred at 23.6 rupees.

IIFL Securities which crossed the stakes made a separate filing on behalf of Melstacorp.
Other businesses started by Distilleries, such as an insurance unit is already under Melstacorp.

Melstacorp also had the stake in Pelwatte Sugar, a firm that was expropriated by the state last year. Distilleries has protested that the law did not cover the firm as the land transactions referred to a period beyond what was stipulated in it.

http://www.lankabusinessonline.com/fullstory.php?nid=1034371911

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