DISTILLERIES COMPANY OF SRI LANKA PLC (DIST.N0000)

Distilleries Company of Sri Lanka PLC is engaged in distillation, manufacture and distribution of liquor products. The Company operates through segments, which include Beverages, Plantations, Telecommunication, Financial Services and Diversified. The Company offers various products and services, which include general insurance services, hydro power generation, automobile servicing and logistics, media buying and creative services, dyeing and printing fabric, hotels and hospitality, business process outsourcing (BPO), knowledge process outsourcing (KPO) and call center services, and information technology. The Company's products include KAREMER BRUT, Adipisicing elit sed., TAVEL ROSE, POUILLY FUISSE, Nappoleon, Extra Special Arrack and varieties of Coconut Arrack. The Company operates through various subsidiaries, which include Continental Insurance Lanka Ltd, Balangoda Plantations PLC, Lanka Bell Ltd, Bogo Power (Pvt) Ltd and Melsta Logistics (Pvt) Ltd.

Hello Melastacorp

?Can you tell us the rationale behind transferring millions of SPENSE shares belonging to DIST @ 124.10 - a price lower than the lowest price (Rs: 125.10) of that particular day.

these sort of transfers always a question to me too. But considering SPEN is top 10 in market capitalization, Rs.1 change can do affect on numbers. Any other theory?

Would wait for Melstacopr response.

But I presume they want to form a holding company under melstacorp. Like VONE concept.

kalum wrote:these sort of transfers always a question to me too. But considering SPEN is top 10 in market capitalization, Rs.1 change can do affect on numbers. Any other theory?

What is the impact of this to NAVPS & profit of DIST? ?Haven't the share holders of DIST been cheeted millions of rupees by the transaction and Melstacorp (a privately owned company) gained undue profits. DIST share holders are affected.

Is n;t melstacorp a subsidiary of DIST?

K.Haputantri wrote:

kalum wrote:these sort of transfers always a question to me too. But considering SPEN is top 10 in market capitalization, Rs.1 change can do affect on numbers. Any other theory?

What is the impact of this to NAVPS & profit of DIST? ?Haven't the share holders of DIST been cheeted millions of rupees by the transaction and Melstacorp (a privately owned company) gained undue profits. DIST share holders are affected.

what if gov suddenly bring a law to takeover DIST from Harry

slstock wrote:Is n;t melstacorp a subsidiary of DIST?

K.Haputantri wrote:

kalum wrote:these sort of transfers always a question to me too. But considering SPEN is top 10 in market capitalization, Rs.1 change can do affect on numbers. Any other theory?

What is the impact of this to NAVPS & profit of DIST? ?Haven't the share holders of DIST been cheeted millions of rupees by the transaction and Melstacorp (a privately owned company) gained undue profits. DIST share holders are affected.

I have no knowledge about it . Even if it is true, if the intention of these transfers is to make Melstacorp the holding company same doubt still remains. I am no expert on these juggleries. Experts please educate us.

You are correct slstock, I checked it in CSE web - Melastacorp is a subsidiary of DIST.

Melstacorp is 100% subsidiary of DIST . So this will not be a big issue.

Also look at 76 of annual report

http://www.cse.lk/cmt/upload_report_file/463_1346843612.pdf

K.Haputantri wrote:

slstock wrote:Is n;t melstacorp a subsidiary of DIST?

K.Haputantri wrote:

kalum wrote:these sort of transfers always a question to me too. But considering SPEN is top 10 in market capitalization, Rs.1 change can do affect on numbers. Any other theory?

What is the impact of this to NAVPS & profit of DIST? ?Haven't the share holders of DIST been cheeted millions of rupees by the transaction and Melstacorp (a privately owned company) gained undue profits. DIST share holders are affected.

I have no knowledge about it . Even if it is true, if the intention of these transfers is to make Melstacorp the holding company same doubt still remains. I am no expert on these juggleries. Experts please educate us.

Hi Melstacorp,

I have been following the DIST / MELSTACORP Group restrucuring exercise with interest. So far, it has been a home and home affair with DIST transfering its associate company stakes to Melstacorp its 100 % subsidiray, in exchange for additional shares in Melstacorp (i presume). The rationale of this restructuring , as you have mentioned before, is to make Melstacorp a VONE /JKH type premier Blue Chip Holding company, without the negative connotation of DIST due to its Liquor business. Another main reason i believe is to safeguard DIST from a SLIC/Pelwatte type situation where DIST would lose its valuable stakes like it did when SLIC was taken over.
Now for all this to make perfect sense, I beleive two things should happen.

1. After all other related company shares have been transferred to Melstacorp, Melstacorp will issue DIST Shareholders Melstacorp shares in exchange for their DIST shares via a share swap. Thus, Melstacorp the 100 % subsidiary of DIST will be the ultimate Parent Holding Company.

2. Listing of Melstacorp in the CSE.

If possible, can you please confirm that my thinking is correct ? more importantly, can you please tell us the timeframe when these 2 will happen ? in 2012, early 2013 or late 2013 ?

Thanks for your continued presence on this forum.

The Alchemist wrote:

1. After all other related company shares have been transferred to Melstacorp, Melstacorp will issue DIST Shareholders Melstacorp shares in exchange for their DIST shares via a share swap. Thus, Melstacorp the 100 % subsidiary of DIST will be the ultimate Parent Holding Company.

2. Listing of Melstacorp in the CSE.

If possible, can you please confirm that my thinking is correct ? more importantly, can you please tell us the timeframe when these 2 will happen ? in 2012, early 2013 or late 2013 ?

Thanks for your continued presence on this forum.

That's very logical.
Finally DIST will be a subsidiary of MELS.N
Child become father and father become child!

hunter wrote:

The Alchemist wrote:

1. After all other related company shares have been transferred to Melstacorp, Melstacorp will issue DIST Shareholders Melstacorp shares in exchange for their DIST shares via a share swap. Thus, Melstacorp the 100 % subsidiary of DIST will be the ultimate Parent Holding Company.

2. Listing of Melstacorp in the CSE.

If possible, can you please confirm that my thinking is correct ? more importantly, can you please tell us the timeframe when these 2 will happen ? in 2012, early 2013 or late 2013 ?

Thanks for your continued presence on this forum.

That's very logical.
Finally DIST will be a subsidiary of MELS.N
Child become father and father become child!

Possible

hunter wrote:

The Alchemist wrote:

1. After all other related company shares have been transferred to Melstacorp, Melstacorp will issue DIST Shareholders Melstacorp shares in exchange for their DIST shares via a share swap. Thus, Melstacorp the 100 % subsidiary of DIST will be the ultimate Parent Holding Company.

2. Listing of Melstacorp in the CSE.

If possible, can you please confirm that my thinking is correct ? more importantly, can you please tell us the timeframe when these 2 will happen ? in 2012, early 2013 or late 2013 ?

Thanks for your continued presence on this forum.

That's very logical.
Finally DIST will be a subsidiary of MELS.N
Child become father and father become child!

That is the strategy of Uncle Harry to protect all his investments in case of a Govt take over DIST like SLIC...By this way even the Govt take over the DIST still Harry will have the whole investments with him without loosing all his efforts/life time earnings...!
I made this remarks some time back and could not find the thread..[can some one post the link to that thread about 3, 4 months back]

Hi all

Sorry for the long delay.

1. As slstock stated above Melstacorp is a 100% owned subsidiary of DCSL PLC. Hence the transfer of Spence or any other holding of DCSL PLC to Melstacorp do not have an impact on the NAV or the effective holding of the DCSL PLC shareholders.

2. This kind of transactions are common in the companies. However we do not have a mechanism to make these transfers free of costs. CSE do not usually allow private transfers. Even the CSE allows it private transfers attract stamp duty. Apart from the buying/selling brokerage , the Cess, SEC fees, CSE fees are enormous. Therefore only saving we can do is to transfer at the lowest price possible at at the lowest brokerage allowed by the CSE. CSE allows crossings below 5% of the market price. This is the reason for the transfer at a 5% lower price that day.

3. While the basis of making Melstacorp the ultimate holding company remains the objective, the mode of getting there is not finalized yet. The share swap mentioned by The Alchemist is one of the options. However such a direct swap may not comply with a certain section in the Companies Act. Therefore once the method is determined by the company based on the legal advise naturally it will be known. So please forgive us for not speculating on it.

Thank you all for the interest and I apologize for the long delay in responding.

@Melstacorp Ltd,

Just curious.
R U representing Harry J?
Or you are just an investor/trader of related stocks?

Melstacorp Ltd wrote:Hi all

Sorry for the long delay.

1. As slstock stated above Melstacorp is a 100% owned subsidiary of DCSL PLC. Hence the transfer of Spence or any other holding of DCSL PLC to Melstacorp do not have an impact on the NAV or the effective holding of the DCSL PLC shareholders.

2. This kind of transactions are common in the companies. However we do not have a mechanism to make these transfers free of costs. CSE do not usually allow private transfers. Even the CSE allows it private transfers attract stamp duty. Apart from the buying/selling brokerage , the Cess, SEC fees, CSE fees are enormous. Therefore only saving we can do is to transfer at the lowest price possible at at the lowest brokerage allowed by the CSE. CSE allows crossings below 5% of the market price. This is the reason for the transfer at a 5% lower price that day.

3. While the basis of making Melstacorp the ultimate holding company remains the objective, the mode of getting there is not finalized yet. The share swap mentioned by The Alchemist is one of the options. However such a direct swap may not comply with a certain section in the Companies Act. Therefore once the method is determined by the company based on the legal advise naturally it will be known. So please forgive us for not speculating on it.

Thank you all for the interest and I apologize for the long delay in responding.

Thank you Melstacorp for your forthright and candid comments. I am fairly certain that when Melstacorp is good and ready to go (list), it will earn a pre-eminent place as a truly Blue Chip Diversified Conglomerate / Investment Holding Company in the Colombo Stock Exchange.

All the very best.

Professional answers. Well done Melsracorp

The Alchemist wrote:

Melstacorp Ltd wrote:Hi all

Sorry for the long delay.

1. As slstock stated above Melstacorp is a 100% owned subsidiary of DCSL PLC. Hence the transfer of Spence or any other holding of DCSL PLC to Melstacorp do not have an impact on the NAV or the effective holding of the DCSL PLC shareholders.

2. This kind of transactions are common in the companies. However we do not have a mechanism to make these transfers free of costs. CSE do not usually allow private transfers. Even the CSE allows it private transfers attract stamp duty. Apart from the buying/selling brokerage , the Cess, SEC fees, CSE fees are enormous. Therefore only saving we can do is to transfer at the lowest price possible at at the lowest brokerage allowed by the CSE. CSE allows crossings below 5% of the market price. This is the reason for the transfer at a 5% lower price that day.

3. While the basis of making Melstacorp the ultimate holding company remains the objective, the mode of getting there is not finalized yet. The share swap mentioned by The Alchemist is one of the options. However such a direct swap may not comply with a certain section in the Companies Act. Therefore once the method is determined by the company based on the legal advise naturally it will be known. So please forgive us for not speculating on it.

Thank you all for the interest and I apologize for the long delay in responding.

Thank you Melstacorp for your forthright and candid comments. I am fairly certain that when Melstacorp is good and ready to go (list), it will earn a pre-eminent place as a truly Blue Chip Diversified Conglomerate / Investment Holding Company in the Colombo Stock Exchange.

All the very best.

DISTILLERIES........look 21/= good price to buy

yes huge buying on 21

How Is The Person collecting share by rs 21/= each

DISTILLERIES -going to start ........look guys......

Don't miss The chance ......DIST...

Analyse and compare with the valuation parameters before you enter because it's still new in their new entrance period.

NAV around 1.5. Does it worth buying around 20 rupees?

Any idea about the large trade volume ?