Monday, March 26, 2012

Subasinghe family ups stake in Ceylinco Insurance

The biggest outside shareholder, the Subasinghe family and connected parties, last week upped their stake in Ceylinco Insurance Plc.

 A 0.21% stake amounting to 42,700 shares of the illiquid Ceylinco Insurance traded on Friday for Rs. 30 million. The block was done at Rs. 700 per share, a big discount in comparison to Thursday’s closing of Rs. 750, Rs. 774.70 closing price in the previous week and Rs. 775 highest last week.


The buyer was Subasinghes’ Global Rubber Industries Ltd., which previously held a 20.17% stake.  The seller was high net worth investor Dr. T. Senthilverl. As at end last year, the Subasinghe family and connected parties held a 28.04% stake.

 Their other holdings are held by Prabash Subasinghe (5.24%) and Global Sea Foods (2.64%).  Analysts said their collective stake now must be above 29% but below the mandatory offer trigger of 30%.

 Last week a total of 44,913 shares of Ceylinco Insurance transacted via 14 trades for Rs. 31.5 million before closing at Rs. 725, down by Rs. 49.70 from the previous week.

 The Subasinghe family first bought into Ceylinco Insurance in February last year at Rs. 500 per share level followed by another block in March at Rs. 750 levels.

 The acquisition by the Subasinghe family of a further stake in Ceylinco Insurance narrows the difference between them and internal or Ceylinco-founder-related shareholding.

 At present around a 33% stake in Ceylinco Insurance is controlled by Ciesot Ltd. (22.86%) and Pictet & Cie (10.68%). These companies are believed to be those set up by Lalith Kotelawala whilst Ceylinco Insurance’s Gratuity Fund and Pension Fund owns a nearly 10% stake.

 A few blocks remain at large including that of Nation Lanka Finance (2.82%) and Castle Realty Ltd. (2.63%).

source - www.ft.lk

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