Nimal, RCL venture into stock broking; to buy control of New World Securities

CSE.SAS

CSE.SAS

Global Moderator

Posts : 2620
Equity Stars : 11482
Reputation : 158
Join date : 2011-02-02
Age : 37

New World Securities (NWS) is scouting for new investors to settle its debts, according to stockbroking circles.

The company owned 80 per cent by Japanese investors and lead by Japan’s a2Media Corporation with prominent investor Takashi Igarashi as its Chairman, has Sri Lankan investors holding some 15 per cent.

“All stockbroking houses including NWS are losing a lot of money, owing to the bad shape that the share market is in right now. The Japanese want to sell out or sell part their stake to an investor,” a source said. He said that many stockbroking houses are hit badly and some are also following the same route of trying to sell out or sell part stake.
http://www.sundaytimes.lk/130324/business-times/disappointed-foreign-broker-looks-for-strategic-investor-37654.html

traderathome

traderathome

Senior Vice President - Equity Analytics

Posts : 2485
Equity Stars : 7386
Reputation : 133
Join date : 2012-02-26
Age : 51
Location : Abu Dhabi

Isnt there a connection between DG resignation and the NWS story.

Brokers perhaps engineered not to give an extension to him.

Matanam pissu wage... Very Happy

CSE.SAS

CSE.SAS

Global Moderator

Posts : 2620
Equity Stars : 11482
Reputation : 158
Join date : 2011-02-02
Age : 37

High net worth investor Nimal Perera is entering into the stock broking industry together with Royal Ceramics Plc (RCL), via a deal to buy 51% control of New World Securities Ltd.

Nimal will be acquiring a 32% stake under his personal account whilst RCL will take up a 19% stake, in a move which is described as a “strategic alliance” as part of a shareholding restructuring at New World Securities (NWS).

The broking firm, set up in March 2011, is controlled by a consortium of Japanese investors-led by Takashi Igarashi.

Entry of Nimal and RCL is by way of enhancing capital with issuance of new shares.

The deal is pending approval from the Securities and Exchange Commission (SEC) and the Colombo Stock Exchange (CSE). NWS is a trading member of the CSE.

Nimal told the Daily FT that NWS would be repositioned as a boutique broking house. He also said that under the new control, NWS hoped to derive benefits from synergies of Pan Asia Bank, LB Finance and Vallibel Finance, all within the financial services industry, as well as several other companies which have strong connections.

Apart from being the Managing Director of RCL, Nimal is also the Chairman of Pan Asia Bank, which has been a party to increased Japanese investments into Sri Lanka’s Government bonds promoted by NWS Holdings, which includes NWS Management Services and NWS Financial Services.

NWS, among a community of 28 brokers, has been active in promoting the market among both retail and high net worth investors whilst having a branch in Anuradhapura. Given its Japanese connections, NWS had also broken new ground by holding road shows in Tokyo in 2011 and 2012.

RCL’s interest in NWS comes hot on the heels of it recently divesting a 51% stake in Asia Siyaka Commodities to Lanka Commodity Brokers for Rs. 371 million, above Rs. 34 million from the original purchase price paid early last year.

Despite the purchase originally with perceived synergies given RCL’s connections with plantations-rich Hayleys Plc, the new acquisition hadn’t benefitted as envisaged. The exit as per analyst will benefit RCL considerably going forward, apart from commodity broking not being part of its core business.

Unlike the 51% stake in Asia Siyaka, in the stock broking entity RCL has a 19% shareholding, which is less than an associate stake, hence will be treated as an investment.
http://www.ft.lk/2013/03/25/nimal-rcl-venture-into-stock-broking-to-buy-control-of-new-world-securities/

Slstock

Slstock

Director - Equity Analytics

Posts : 6610
Equity Stars : 13569
Reputation : 1158
Join date : 2011-01-22

Tea brokering to stock brokering.

"He also said that under the new control, NWS hoped to derive benefits from synergies of Pan Asia Bank, LB Finance and Vallibel Finance, all within the financial services industry, as well as several other companies which have strong connections."

Hmm, margin facilities as more business?

WildBear

WildBear

Assistant Vice President - Equity Analytics

Posts : 723
Equity Stars : 5748
Reputation : 65
Join date : 2011-07-02

NP and the clan slowly getting ready for a ride tongue

CSE.SEE

CSE.SEE

Manager - Equity Analytics

Posts : 156
Equity Stars : 6351
Reputation : -5
Join date : 2011-02-02
Age : 54

WildBear wrote:NP and the clan slowly getting ready for a ride

Redbulls

Redbulls

Director - Equity Analytics

Posts : 6053
Equity Stars : 16262
Reputation : 770
Join date : 2012-02-14

WildBear wrote:NP and the clan slowly getting ready for a ride

May be you are correct, DG resignation also show us some smoke no?

rainmaker

rainmaker

Assistant Vice President - Equity Analytics

Posts : 914
Equity Stars : 6433
Reputation : 45
Join date : 2013-02-06

Owning a brokerage gives one a special advantage as one knows the buyer/seller instantly. No need for speculation.

Sponsored content

Name*:
Phone number:
Email address*:
Comments*:
* - required fields	Learn

Name*:
Phone number:
Email address*:
Comments*:
* - required fields	Learn

Latest topics

Nimal, RCL venture into stock broking; to buy control of New World Securities

1 Disappointed foreign broker looks for strategic investor Sun Mar 24, 2013 1:51 am

CSE.SAS

2 Re: Nimal, RCL venture into stock broking; to buy control of New World Securities Sun Mar 24, 2013 8:06 am

traderathome

3 Nimal, RCL venture into stock broking; to buy control of New World Securities Mon Mar 25, 2013 1:12 am

CSE.SAS

4 Re: Nimal, RCL venture into stock broking; to buy control of New World Securities Mon Mar 25, 2013 6:00 am

Slstock

5 Re: Nimal, RCL venture into stock broking; to buy control of New World Securities Mon Mar 25, 2013 10:30 am

WildBear

6 Re: Nimal, RCL venture into stock broking; to buy control of New World Securities Mon Mar 25, 2013 10:32 am

CSE.SEE

7 Re: Nimal, RCL venture into stock broking; to buy control of New World Securities Mon Mar 25, 2013 11:48 am

Redbulls

8 Re: Nimal, RCL venture into stock broking; to buy control of New World Securities Mon Mar 25, 2013 11:54 am

rainmaker

9 Re: Nimal, RCL venture into stock broking; to buy control of New World Securities

Sponsored content

New topics