FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post



Poll

Can there be another Covid-19 wave in Sri Lanka?

MELSTACORP PLC (MELS.N0000) - Page 2 Vote_lcap68%MELSTACORP PLC (MELS.N0000) - Page 2 Vote_rcap 68% [ 178 ]
MELSTACORP PLC (MELS.N0000) - Page 2 Vote_lcap18%MELSTACORP PLC (MELS.N0000) - Page 2 Vote_rcap 18% [ 47 ]
MELSTACORP PLC (MELS.N0000) - Page 2 Vote_lcap13%MELSTACORP PLC (MELS.N0000) - Page 2 Vote_rcap 13% [ 35 ]

Total Votes : 260

STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» Omicron Vs Oil prices
by invest thinker Today at 1:34 pm

» Penny Stock Companies
by thankrishan Today at 1:28 pm

» Hidden Gem - GLAS - 40/- Soon
by invest thinker Today at 1:18 pm

» HSenid IPO
by abey Today at 12:31 pm

» Fundamental/Technical analysis & beyond ~CLC
by PhilT Today at 12:17 pm

» NAMU/WATA super gain
by Kaptivajkss Today at 11:37 am

» CEYLON GUARDIAN INVESTMENT TRUST PLC (GUAR)
by cheetah Today at 11:33 am

» Key Plantation Company Fair Values - KOTA, TPL and KVAL with very High Upside
by Kaptivajkss Today at 11:09 am

» LLUB comparison between 2016- 2021 Same EPS Trading at Huge discount
by Kaptivajkss Today at 11:04 am

» LOFC Direction
by PhilT Today at 10:58 am

» KZOO 32.8% Upside
by Swissinvest Today at 10:55 am

» LOLC waiting for LOFC 100+ and CLC 100+
by Swissinvest Today at 10:23 am

» LANKA REALTY INVESTMENTS PLC -ASCO
by D.G.Dayaratne Today at 7:10 am

» Bloodbath is Coming ? Correction is Coming ? අලුත් ගෲප් හදාගෙන අපි genuine කියලා එන පරණ මහත්(හොරුන්) වරුන් ගෙන් බේරෙන්න
by D.G.Dayaratne Today at 7:03 am

» BAIRAHA FARMS PLC (BFL.N0000)
by Pbv Yesterday at 9:33 pm

» TILE / LWL / RCL
by Thushara Ayya Yesterday at 5:16 pm

» Month end impact on LOFC and CLC
by Swissinvest Yesterday at 3:05 pm

» Water For All - CIND
by ErangaDS Yesterday at 2:20 pm

» U.S. inflation is one of the highest in the world
by ResearchMan Yesterday at 2:09 pm

» Oil Plummets
by ResearchMan Yesterday at 2:07 pm

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » MELSTACORP PLC (MELS.N0000)

MELSTACORP PLC (MELS.N0000)

+74
sameera_cds
Vasyan
Vishwanarth
M S L DIAS
dhanushkacse
DamithAsian
DOCSAGENCY
100Bill
atdeane
High-flyer
seany
kottuwa
judecroos
kanishkaecomm
gayanhdd
Pradeep90
bizniz
Jana
MR.T5n
Ahilan007
Kanishka_2020
RJ1010
Winner123
SL-INVESTOR
IDK
MarketResearch
Tradewise
C.THARANGA
heroxhere
engineer
SANJAYANM
NHS
abey
shakthi1974
shihan 93
wealth123
Champ888
nish84
madukp
cheetah
samaritan
lakymahesh
MoneyLover
Manager2
Ekanayake90
Intrinsicvalue
ColomboCSE
roshan1039
Quibit
cseranga
soileconomy
wisdom79
ChooBoy
God Father
SelvaKolla
Agape
Lucky Gamage
thankrishan
Teller
Chanuque
K.Haputantri
Redbulls
Melstacorp Ltd
Whitebull
UKboy
aj
market bull
sapumal
bullrun
The Alchemist
Monster
greedy
Rizmi
KPMG
78 posters

Go to page : 1, 2, 3, 4, 5, 6  Next

Go down  Message [Page 2 of 6]

21MELSTACORP PLC (MELS.N0000) - Page 2 Empty MELSTACORP PLC (MELS.N0000) Tue Jul 03, 2012 10:10 pm

Melstacorp Ltd


Stock Analytic
Stock Analytic

Melstacorp Limited is a fully owned subsidiary of DIST. The benefits of transferring the subsidiaries of DCSL to Melstacorp are.

1. Synergies in a group brand name ... The new subsidiaries of Melstacorp include Melsta Regal Finance Limited, Melsta Logistics Ltd etc. The name 'Distilleries' cannot be used in a subsidiary and hence the group do not benefit by the advertising of subsidiaries such as Lanka Bell Ltd. There will be e benefit to the smaller companies on the recognition.

2. Building a conglomerate brand ... many foreign shareholders consider DIST as a beverage company although in 2007 almost 50% of the profits came from non -liquor sectors. (Before the loss of SLIC and Lanka Hospitals). Melstacorp will in the future be looked at like John Keells, Hemas or Aitken Spence.

Already established subsidiaries such as Lanka Bell Ltd, Continental Insurance etc. are likely to continue in their own names for obvious reasons.

http://www.melsta.com

22MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Wed Jul 04, 2012 1:07 am

Redbulls


Director - Equity Analytics
Director - Equity Analytics

A good way of introducing a valuable company.
Thanks for the info.

23MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Wed Jul 04, 2012 7:59 am

K.Haputantri


Co-Admin

I thought DIST means DCSL, one and the same company. ?Can any one clarify this.

24MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Wed Jul 04, 2012 10:14 am

Redbulls


Director - Equity Analytics
Director - Equity Analytics

@K.Haputantri wrote:I thought DIST means DCSL, one and the same company. ?Can any one clarify this.

Same no dobut.
http://www.dcslgroup.com/about_dcsl_history.aspx

25MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Wed Jul 04, 2012 12:09 pm

sapumal


Vice President - Equity Analytics
Vice President - Equity Analytics

Thanks for information if you are from Melstacorp Ltd. Investors had different guesses regarding share deals.
Is this have some relation to continental insurance company ?

26MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Wed Jul 04, 2012 12:49 pm

Chanuque

Chanuque
Manager - Equity Analytics
Manager - Equity Analytics

Either, HJ is having complexes to admit that the core revenues of DIST are from liquor and MELSTACORP will be the sober entity that should be getting more accepted PR with the prestige that goes with other heavy weight blue chips as JKH | HHL .. HJ, you are right color of money does mean everything ..

27MELSTACORP PLC (MELS.N0000) - Page 2 Empty Hi Wed Jul 04, 2012 5:17 pm

Melstacorp Ltd

Melstacorp Ltd
Stock Analytic
Stock Analytic

1. DIST is the CSE tiker for DCSL PLC, like VONE = Valible One.
2. Continental Insurance Lanka Limited is a fully owned subsdiary of Melstacorp Limited.

Thank you for your interest

Melstacorp Ltd

http://www.melsta.com

28MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Thu Jul 05, 2012 1:31 am

UKboy

UKboy
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

@Melstacorp Ltd wrote:Melstacorp will in the future be looked at like John Keells, Hemas or Aitken Spence.


Melstacorp Ltd,
Please let us know whos gonna handle Melstacorp after HJ's era? Who will be the main actor? Rolling Eyes
I cannt imagine HJ's son will be next. Those two are totally different characters. ( As far as I heard)

29MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Thu Jul 05, 2012 1:10 pm

Melstacorp Ltd

Melstacorp Ltd
Stock Analytic
Stock Analytic

The Managing director of Melstacorp is Mr. Amitha Gooneratne, former MD of Commercial Bank. He and his team will be in charge of Melstacorp and its subsidiaries. HJ is the non-executive Chairman.

http://www.melsta.com

30MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Thu Jul 05, 2012 2:26 pm

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics

@Melstacorp Ltd wrote:The Managing director of Melstacorp is Mr. Amitha Gooneratne, former MD of Commercial Bank. He and his team will be in charge of Melstacorp and its subsidiaries. HJ is the non-executive Chairman.
http://forum.srilankaequity.com/t17953-sri-lanka-newspapers-sunday-13-05-2012#118284

31MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Fri Jul 06, 2012 11:22 am

UKboy

UKboy
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

@Melstacorp Ltd wrote:The Managing director of Melstacorp is Mr. Amitha Gooneratne, former MD of Commercial Bank. He and his team will be in charge of Melstacorp and its subsidiaries. HJ is the non-executive Chairman.

Thanks Melstacorp Ltd. Who will be the next non-excutive chairman of this company then?
Apologise for the (same) question.
All I would like to know HJ will be replaced by whom? Who will be the one and only one owner behind the screen. I know its hard to predict this early but its a worthy try.Thanks

32MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Tue Jul 10, 2012 2:41 pm

Melstacorp Ltd

Melstacorp Ltd
Stock Analytic
Stock Analytic

Hi UK Boy

Thank you for your post. Melstacorp's ultimate holding company Milford Exports Ceylon Ltd (MECL), has 4 shareholders including Mr. H. Jayawardena. It is a private limited liability company. Succession if any will be determined by the shareholders of the said MECL if they remain the majority shareholder of DSCL PLC (and thereby Melstacorp). This is all we can say based on the available information.

Melstacorp Ltd

http://www.melsta.com

33MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Wed Jul 18, 2012 2:42 am

UKboy

UKboy
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

@Melstacorp Ltd wrote:Hi UK Boy

Thank you for your post. Melstacorp's ultimate holding company Milford Exports Ceylon Ltd (MECL), has 4 shareholders including Mr. H. Jayawardena. It is a private limited liability company. Succession if any will be determined by the shareholders of the said MECL if they remain the majority shareholder of DSCL PLC (and thereby Melstacorp). This is all we can say based on the available information.

Melstacorp Ltd

Ok Melstacorp Ltd thanks.

Melstacorp Ltd

Melstacorp Ltd
Stock Analytic
Stock Analytic

Distilleries Company of Sri Lanka PLC (DCSL) announced a reorganization of the Shares and Stated Capital of DCSL and its fully owned subsidiary Melstacorp Limited (Melstacorp) in a Colombo Stock Exchange announcement. According to the announcement Melstacorp limited which will become the parent company of DCSL PLC and other subsidiaries of the current DCSL Group.  
 
In what is believed to be Sri Lanka’s first 180 degree share swap, Melstacorp which is a 100% owned subsidiary of DCSL PLC will become the holding company while DCSL PLC will become a subsidiary of Melstacorp Limited.
Upon the completion of the reorganization which requires the approval of the shareholders of DCSL PLC, Melstacorp shall become the Flagship of the Group. The shareholders of DCSL will be allotted shares in Melstacorp, in the proportion of four (4) Melstacorp shares in exchange for every one (1) share the now hold in DCSL.
 
DCSL PLC shall become a fully owned subsidiary of Melstacorp and Current shareholders of DCSL shall own shares in Melstacorp and through Melstacorp, all the subsidiaries in the Group including that of DCSL. The Company will hence apply to the Securities and Exchange Commission of Sri Lanka / Colombo Stock Exchange for the transfer of the DCSL shares to Melstacorp in exchange of the issue of shares in Melstacorp to DCSL shareholders. Melstacorp will also make an application to be listed in the CSE.
 
Subsequent to the swap 100% DCSL PLC will be held by Melstacorp Limited. Hence the group will issue fresh DCSL PLC shares to the public with a preferential allotment to the shareholders of Melstacorp over third party applicants.  This will restore the public float of the Company. Upon such issue major shares holder of DCSL PLV will continue to be Melstacorp Limited.
 
The rationale of the re-organization
 
Until 1995 DCSL PLC was a liquor producing company listed in the CSE. Since 1995 DCSL PLC had made several investments in various diversified sectors of Sri Lankan economy such as in Insurance, Telecommunications, Logistics, Leasing, Fabric Manufacture, Leisure, Information Technology, Hydro Power and BPO Services.  Although the nature of the business of DCSL changed from a ‘liquor’ company in to a diversified holding company, the name of the holding company remained unchanged. The Company however could not extend the name “distilleries” to such investee companies as it is descriptive of the ‘liquor’ industry. 
 
With the introduction of the National Authority on Tobacco and Alcohol Act No.27 of 2006, using DCSL as a corporate brand became illegal although it was the abbreviated form of the holding company’s name.
 
As such, the DCSL PLC decided to introduce a Group brand name that it can use amongst the group companies without violating the said National Authority on Tobacco and Alcohol Act. Consequently, the Management decided to rebrand the group under a new common brand, namely, ‘MELSTA’. With a Group brand in mind, a holding company named Melstacorp Limited was formed as a 100% owned subsidiary of DCSL and all investments of DCSL are now owned through Melstacorp Limited.
 
In view of the forgoing, in order that the investee companies benefit from an established and a common Group brand, the Board has decided to recommend to the shareholders to make Melstacorp Limited the ultimate holding company of the Group and to be the flagship of the Group and to obtain a listing for its shares on the Trading Floor of the Colombo Stock Exchange, subject to the relevant approvals from the Securities and Exchange Commission of Sri Lanka and the Colombo Stock Exchange.
 
 
Additional information.
 
Current Market Capitalization of DCSL PLC is Rs. 72 billion.
The Chairman of Melstacorp Limited is Mr. Harry Jayawardena
The Managing Director of Melstacorp is Mr. Amitha Gooneratne.
Subsidiaries of Melstacorp: Lanka Bell Limited, Melsta Regal Finance Limited, Continental Insurance Lanka Limited, Melsta Logistics Limited, Bellvantage Limited, Balangoda Plantations PLC.
Significant holdings: 43.96% of Aitken Spence PLC, 45.91% of Madulsima Plantations, 41.88% Browns Beach Hotels PLC. 

http://www.melsta.com

35MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Mon Aug 01, 2016 5:26 pm

Melstacorp Ltd

Melstacorp Ltd
Stock Analytic
Stock Analytic

Please see the page 6 of the following CSE announcement. 

http://cse.lk/cmt/upload_cse_announcements/441470052155_.pdf

Thank you

Melstacorp Ltd

http://www.melsta.com

36MELSTACORP PLC (MELS.N0000) - Page 2 Empty Melstacorp will be next? Fri Dec 02, 2016 10:47 pm

Teller

Teller
Moderator
Moderator

Draft introductory documents have been uploaded. So very interesting to see.

37MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Mon Dec 05, 2016 2:25 am

Teller

Teller
Moderator
Moderator

17,000 million plus annual turnover, good profitable company. Issue price 65-70 rupees per share


_________________




Teller said is said..

38MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Mon Dec 05, 2016 11:39 am

thankrishan


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Cool

39MELSTACORP PLC (MELS.N0000) - Page 2 Empty Expert Ideas on MELS N.000 at Rs.60/- Fri Dec 30, 2016 10:29 am

Lucky Gamage

Lucky Gamage
Manager - Equity Analytics
Manager - Equity Analytics

Experts,, please share your ideas to forum on MELS at 60/-

40MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Fri Dec 30, 2016 1:41 pm

Agape


Senior Equity Analytic
Senior Equity Analytic

For me the MELS share should reflect a price similar to a share split of DIST of 4 shares for every 1-Thus If am I remember correctly DIST closed at 240\=before the delisting-So then theoretically MELS should be 60\= or lower given the weak sentiment on the CSE

SelvaKolla


Stock Analytic
Stock Analytic


February, 6, 2019
News from: http://bizenglish.adaderana.lk/sri-lankan-billionaire-liquor-baron-harry-js-melstacorp-nearing-10-stake-of-jkh/


MELSTACORP PLC (MELS.N0000) - Page 2 Harry-Jayawardene1-2
Analysts say if Melstacorp takes over control of JKH, Harry J may virtually control 4 largest Licensed Commercial Banks, several Finance and Insurance Companies apart from being a Liquor and Dairy Baron that controls Colonial era founded 2 largest Conglomerates in Sri Lanka
Sri Lanka’s one of the oldest-richest men and a Billionaire turned Liquor and Dairy Baron Harry Jayawardena, has increased his shareholding in Colombo Stock Exchange’s (CSE) leading listed Blue Chip in Sri Lanka - John Keells Holdings (JKH) to nearly 10%, latest financials note.
Billionaire Harry Jayawardena’s Melstacorp PLC owned 8.4% of JKH voting shares according to the December 31, 2018 financials of JKH. The John Keells Holdings (JKH) group is Sri Lanka’s foremost conglomerate that sells Keells Sausages to Elephant House Sausages to Elephant House Drinks; Premier Cinnamon City and Suburb Hotel Rooms to Expensive City Condominiums in the country apart from controlling a larger share of Port Operations, Tea and Rubber Broking to several other industries. The JKH group’s over 13%-16% stake for almost two decades has been under ownership of Billionaire Sohli Captain and family along with his company Paints and General Industries that also control one of Sri Lanka’s oldest and leading agricultural and fertilizer business conglomerate CIC Holdings. Sohli Captain and Rusi Captain along with Paints and General Industries still control over 20% of JKH as at 31st December financials.
The second largest shareholder of JKH is Malaysia’s state investment arm Khazanah Nasional’s special investment purpose vehicle Broga Hill Investment Ltd (Current stake 10.2%) that bought an 8.9% stake in Sri Lankan conglomerate John Keells Holdings (JKH) for nearly US $ 120 million in Mid-March 2012 and increased the stake form their onwards till 2013.
JKH recently concluded a buyback of shares by January 2019, which was announced in November 2018 that planned to execute a share buyback to the tune of Rs.11.1 billion, offering to repurchase one out of every 20 ordinary voting shares in issue, at a price of Rs.160 per share from existing shareholders. The Board of Directors of John Keells Holdings PLC (the Company) highlights in the December 2018 financials that they resolved on 11 November 2018 to repurchase up to a maximum of 69,376,433 of its Ordinary Shares, amounting to 5% of the total number of issued shares of the Company and the Company received acceptance of 32,189,118 Ordinary Shares (which amounts to acceptance of 46%) and 37,187,315 shares were allocated for repurchase based on the additional applications. A total amounting to Rs. 11.10 billion has thus been paid out on 25 January 2019.
As at 31st December 2018 JKH had 1,387,528,658 (over 1.38 billion) voting shares in issue whilst  10,914,400 (Over 10 million) of them are owned by current Chairman Krishan Balendra and 20,006,476 (Over 20 million) of them are owned by his father and first Sri Lankan Chairman of JKH Kandiah Balendran. Apart from that recently retired JKH Chairman Susantha Ratnayake also owns 9,241,144 (Over 9 million) shares of JKH making the two former Chairmen and Present Chairman Billionaires in the country. Market analysts note that a possible subsequent purchases by Harry Jayawardena after the December quarter, it is likely that the Melstacorp holding in JKH may be close to 10%.
Market analysts further points out that if Billionaire Harry Jayawardena or his Melstacorp representatives get a Board Seat or two of John Keells Holdings (JKH) will indirectly give opportunity to Harry Jayawardena and his family to control JKH associate and subsidiary banks and insurance companies such as Nations Trust Bank and Union Assurance. Harry Jayawardena already controls country’s largest privately owned three licensed commercial banks in Sri Lanka including HNB, DFCC and Commercial Bank apart from the finance and insurance companies owned by those banks apart from Harry Jayawardena owned Continental Insurance. Some economic experts and analysts outline that many entrepreneurs and common people lose access for credit opportunities or unable to seek potential credit for enterprise growth once a ‘Mega Oligarch’ take the control of several banks in the country which will provide ample of huge opportunities for such an Oligarch to take over other ailing businesses or running enterprises in an economy which has only 21 million populace, whilst such an economy is controlled by mostly un-educated politicians that take unwise policy decisions falling to the hands of the Oligarchs business agenda. Earlier Sri Lanka’s financial regulators had written legislation that has prevented local banks from falling into the hands of a controlling shareholders such Harry Jayawardena, however he still continue hold a larger percentage of HNB, DFCC and Commercial Bank whilst it has also paved some Harry J favoured professionals (who are also relatively attached to country’s top politicians) to serve the top seat in top two privately owned banks in the country including HNB and Commercial making history in Sri Lanka.
JKH reported revenue at Rs.36.55 billion for the third quarter of the financial year 2018/19 which is a 17% increase over the Rs.31.22 billion recorded in the previous financial year. The cumulative revenue for the first nine months of the financial year 2018/19 at Rs.99.28 billion is an increase of 13% over the revenue of Rs.87.66 billion recorded in the same period of the previous financial year. The profit attributable to equity holders in the third quarter of the financial year 2018/19 at Rs.4.80 billion is an increase of 7% over the corresponding period of the previous financial year, whilst the first nine months performance at Rs.12.08 billion is an increase of 9% over the previous year.
 
- Reporting by Devendra Francis

42MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Thu Feb 07, 2019 1:27 pm

SelvaKolla


Stock Analytic
Stock Analytic

[size=33]Harry J’s shareholding in JKH approaching 10%, stake valued at close to Rs20bn[/size]
Author LBONews from: http://www.lankabusinessonline.com/harry-js-shareholding-in-jkh-approaching-10-stake-valued-at-close-to-rs20bn/
Posted on February 5, 2019 | Economy & Markets, MarketsMELSTACORP PLC (MELS.N0000) - Page 2 KB-800x534

Krishan Balendra during a Bloomberg Television interview in Hong Kong. Photographer: Lam Yik Fei/Bloomberg via Getty Images


February 5, 2019 (LBO) – Sri Lanka’s richest man, Harry Jayawardena, has increased his shareholding in Colombo Stock Exchange bellwether John Keells Holdings (JKH) to near 10%.  The total value of his shareholding is now worth close to Rs20bn.
As of December 31, 2018, Jayawardena’s Melstacorp PLC owned 8.4% of JKH.
After the quarter ended, the company executed a buyback transaction in which JKH bought back 5% of its total outstanding shares for Rs160/share.
After the company buyback, and possible subsequent purchases by Jayawardena after the December quarter, it is likely that the Melstacorp holding in JKH is close to 10%.
JKH is Sri Lanka’s most important stock exchange listed company. It is the only local company that has been able to attract in excess of a billion dollars in foreign investment through the capital markets, and it is likely the only local company with the financial muscle to embark on billion dollar projects like its upcoming Cinnamon Life property development.
JKH has just recently undergone a leadership transition where the Board of Directors chose Chairman/CEO Krishan Balendra (45) to lead the company for at least the next decade. Balendra and the Board have yet to express views on shareholders accumulating large stakes of the company in excess of 10%. It is also unclear if representatives of such large shareholders will be invited to join the JKH Board of Directors.
Some market watchers are of the opinion that if control of JKH were to fall into the hands of one of Sri Lanka’s oligarchs, that it would be as significant detriment to the country and its economy.
Sri Lanka has written legislation that has prevented local banks fro falling into the hands of a controlling shareholder. Previously, it was the same Harry Jayawardena who made plays to take over Sri Lanka’s largest listed banks: Commercial Bank (COMB) and Hatton National Bank (HNB).
Other than with banks, policy makers have yet to express views on control of Sri Lanka’s largest companies by high net worth investors.
[size=14]MELSTACORP PLC (MELS.N0000) - Page 2 Jkh-shareholders
[/size]

43MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Fri Nov 01, 2019 1:02 pm

God Father


Manager - Equity Analytics
Manager - Equity Analytics

MELSTACORP PLC (MELS.N0000) - Page 2 Screen33
MELSTACORP PLC (MELS.N0000) - Page 2 Screen31
MELSTACORP PLC (MELS.N0000) - Page 2 Screen32

44MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Fri Nov 01, 2019 1:07 pm

God Father


Manager - Equity Analytics
Manager - Equity Analytics

MELSTACORP PLC (MELS.N0000) - Page 2 Screen34

45MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Mon Nov 04, 2019 7:56 am

ChooBoy


Manager - Equity Analytics
Manager - Equity Analytics

[size=33]Melstacorp to remain acquisitive in non-alcobev sector[/size]




Melstacorp PLC will continue to look for acquisition and investment opportunities in the non-alcoholic beverage segment as the company is looking to further reduce its over-reliance on its alcohol business, which is largely susceptible to the country’s lopsided and frequently changing public policy.


However, such acquisitions or investments could weigh on the group’s leverage, which has already weakened due to large debt-funded investments in recent times, cautioned Fitch Ratings.



While affirming the conglomerate’s rating at ‘AAA’ with a ‘Stable’ outlook, the rating agency stated that the entity’s net leverage had weakened to 1.8 times during the financial year ended March 31, 2019 from 1.3 times a year ago due to the increased debt.


However, the rating affirmation reflects Fitch’s expectation of the company’s ability to maintain the leverage below 2.0 times over the medium term, despite large investments.


“The ratings of Melstacorp and Distillery Company could come under pressure if Melstacorp continues to make large debt-funded investments that dilute the cash-flow stability of its core spirits business or are not immediately cash-flow accretive,” the rating agency stated.



Fitch measures leverage as net adjusted debt/operating earnings, before, interest, tax, depreciation, amortisation (EBITDA) and rent.



At Melstacorp, net leverage includes its 51 percent share in Aitken Spence PLC’s net debt and EBITDA, but excluding its insurance subsidiary.



Since the restructuring of the conglomerate under Melstacorp through a complex share swap, the company was cleaving off some of its business units such as its finance company and entered into healthcare and cement sectors by investing as much as Rs.1.2 billion.



Meanwhile, Melstacorp has also increased its stake in the country’s largest conglomerate, John Keells Group from 3.5 percent to 9.9 percent spending as much as Rs.12 billion, which was largely debt-funded, Fitch said.



Since its restructuring, the group has been vying for investment opportunities in various sectors as its subsidiary, Distilleries Company of Sri Lanka PLC, is still making 70 percent of the group’s consolidated EBITDA and is expected to be the case in the medium term.



Although Distilleries Company remains the market leader with a market share of 70 percent, up from 65 percent in 2017, the unproportionate tilt towards one business segment, which is also highly contingent on the government policy, has led the company to continue to look for further diversification opportunities in non-alcoholic beverage segment.



“Distillery Company saw a drop in sales volume in 2018 following the 2017 excise-duty revision, which brought down taxes on beer. This led to consumer demand shifting to beer, away from spirits, which has become cheaper on an equivalent-alcohol basis.



Distillery Company has also lost volume to the illicit market owing to the high tax regime and weak economic conditions, which has made its products less affordable. The government reduced the excise tax difference between spirits and beer to 20 percent in March 2018, from 34 percent, which partly contributed to Distillery Company’s net revenue growth of 10 percent in 1Q20, Fitch stated.



Apart from the distiller, Melstacorp has interests to plantations, telecommunication, power generation and leisure.

46MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Thu Nov 07, 2019 8:37 pm

ChooBoy


Manager - Equity Analytics
Manager - Equity Analytics

Melsta Corporation Simple value calculation based on current market price their listed subsidiaries

Distilleries Compant: Market Cap 80.50B X 92.5% = 75bn
Aitken Spence PLC: Market Cap 18.07B X 50.1% = 9bn
John Keels Holding : Market Cap 202.34B X 9.8% = 20bn

Total value = 104bn

47MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Thu Nov 07, 2019 8:39 pm

God Father


Manager - Equity Analytics
Manager - Equity Analytics

@ChooBoy wrote:Melsta Corporation Simple value calculation based on current market price their listed subsidiaries

Distilleries Compant:  Market Cap 80.50B X 92.5% = 75bn
Aitken Spence PLC:   Market Cap 18.07B X 50.1% = 9bn
John Keels Holding : Market Cap 202.34B X 9.8% = 20bn

Total value = 104bn


MELSTACORP PLC (MELS.N0000) - Page 2 Mels10

48MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Fri Nov 08, 2019 7:23 am

wisdom79

wisdom79
Vice President - Equity Analytics
Vice President - Equity Analytics

This must reach above 60/- but it's still sleeping!!!!

49MELSTACORP PLC (MELS.N0000) - Page 2 Empty Re: MELSTACORP PLC (MELS.N0000) Fri Nov 08, 2019 8:12 am

soileconomy

soileconomy
Vice President - Equity Analytics
Vice President - Equity Analytics

HJ was able to control leading private banks and insurance companies and accumulate wealth through Sri Lanka insurance corporation in a considerable way.
That was limited by the judgement given by supreme court by handing over SLIC back to government.
The treasury has still not paid the monies due,to distilleries company which was the original investment arm.
That is above Rs 5 billion.

cseranga

cseranga
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

If you can buy & hold MELS.N for 1 year you can sure sell it for 80/=, likely to be the next Rajapakshas favorite companies who occupied the front seat of number of Viyathmaga forums Very Happy Very Happy Very Happy Very Happy

Sponsored content



Back to top  Message [Page 2 of 6]

Go to page : 1, 2, 3, 4, 5, 6  Next

Permissions in this forum:
You cannot reply to topics in this forum