Tuesday, June 7, 2011

Panasian, Emagewize power highest transaction on CSE

By Hiran H. Senewiratne

Emagewize, a major shareholder of Citrus Leisure PLC, bought 70 million shares of Panasian Power PLC investing more than Rs 4 billion thus recording the biggest transaction at the Colombo Stock Market yesterday (6), brokers said.

A Panasian Power share was traded at Rs. 4.70 initially during the day but then shot up to Rs. 8.40 with 367.6 million shares changing hands generating a turnover of Rs 2.5 billion, market sources said.

This pushed up turnover at the CSE to a little more than Rs. 4.9 billion yesterday.

Brokers told The Island Financial Review that Citrus Leisure had infused Rs. 4 billion for the transaction. Out of the 500 million Panasian Power shares, 367 million were traded during the day. Emagewize bought 70 million shares at Rs. 6 each.

Further, the second largest shareholder of Pan Asia Power Palacepath Holding (Pvt) Limited, is believed to have sold Panasian Power shares to Emagewize, brokers said.

Panasian Power Ltd (PAP) is a wholly owned subsidiary of Power Hub International Sbn Bhd, Malaysia, registered with the Board of Investment of Sri Lanka since April 22, 2002.

The company owns and operates a mini-hydropower plant in the Ratnapura district, utilizing the waters of the Kalu Ganga. It has also acquired Manelwala Hydropower, located at Walapane in the Nuwara Eliya district.

The company has expanded its total generation capacity to 4.4MW.

Last week Colombo Land said in a disclosure that Emagewize had sold 14.5 million shares of the company at a price of Rs 43.59 for a share with Kalpitiya Beach Resort buying nearly 20.4 million shares at an average of Rs 43.59 per share.

Citrus Leisure’s first acquisition was a 7 acre land in Waskaduwa, at a sum of Rs. 221 million. Construction is scheduled to begin in early 2011 on a 150-roomed star class resort on the beach property.

Last year the company acquired a 78 acres property in Kalpitiya via the purchase of a 25 acre land known as ‘Santhoduwa’ for Rs. 67 Million and entering in to a 99-year lease agreement with Asia Sports Management Pvt. Ltd for a 35 acre plot, also in ‘Santhoduwa’.

The land will be converted into a resort with 150 rooms and 28 waterfront villas. Work has already commenced with renowned architect Murad Ismail to design the two waterfront resorts.

Negotiations are also underway to acquire another plot of land on the East coast for a new beachfront resort.

Furthermore, the company has already embarked on a refurbishment & expansion of Citrus Hikkaduwa. The five month refurbishment, beginning in May 2011, will strategically be managed on a strict policy of cost versus benefit, with the stated purpose of doubling revenue by the end of the next financial year.

source - www.island.lk

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