Tuesday, March 22, 2011

SLIC sells Central Finance stake

Central Finance Limited Plc (CFIN) shares amounting to 1.6 million (8 percent) were traded at the Colombo Stock Exchange yesterday, contributing Rs. 1.5 billion to the days turnover.

The CFIN share block was traded at Rs.800, down Rs.3.90 from the last traded price.

It is believed that state-run Sri Lanka Insurance Corporation (SLIC) which had 1.672 million shares (or just over 8 percent) of Central Finance as per the December 31, 2010, has divested its shares.

According to unconfirmed reports, the buyer is believed to be Perpetual Capital Limited led by Arjun Alosius.

After the trade, CFIN shares shot up, almost touching Rs.1000 mark. The highest traded CFIN price for the day was Rs.985. The share closed at Rs.934.

CFIN has 20.3 million shares in issue as at December 31, 2010.

Speculation is rife that Central Finance will soon announce a shares sub-division.

Meanwhile, it is believed that investor and business figure Dhammika Perera yesterday collected over 260, 000 Hayleys shares at Rs.390, in a single crossing.

Dhammika and Royal Ceramics Plc (RCL) collectively triggered the mandatory code for the Hayleys in January, and it is believed that Dhammika is trying to acquire 51 percent stake in Hayleys. Dhammika and RCL presently own nearly 32 percent of the company.

The mandatory offer price by Dhammika and RCL was Rs.380. The Independent Advisor report obtained by the Hayleys board recently said this mandatory offer price was ‘unattractive’.

source - www.dailymirror.lk

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