Thursday, July 28, 2011

EPF buys 3.5% Browns stake for Rs. 737m

PC House owner Rishan exits

In a welcome return of pension fund giant, the EPF yesterday bought a 3.5% stake in Brown and Company for Rs. 737 million.

Browns saw 2.568 million of its shares change hands via 62 trades for Rs. 745 million. Of that there were 7 crossings involving 2.54 million shares at Rs. 290 each. It closed at Rs. 285.30, down by Rs. 5.70.
The seller was PC House Chairman S.H.M. Rishan.
Last week Browns closed at Rs. 286.10 down by Rs. 14.90 from Rs. 301 a week earlier. Its 52-week highest was Rs. 404.90. Net asset per share is Rs. 135.68 and Rs. 203.65 at Group level.

For the buyer, EPF it was the first stake at Browns which is controlled by companies owned and/or connected to Ajit Devasurendra, Ishara Nanayakkara and Shankar Somasundaram.

In 2010/11 financial year, Browns posted a Rs. 3.6 billion after tax profit up by 184% over the previous year. Net profit attributable to equity holders was Rs. 2.06 billion, up from Rs. 1.0 billion in FY2010.

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