Chemanex sells Commercial Insurance Brokers for Rs.250mn

ECONOMYNEXT- Chemicals manufacturer Chemanex Plc said that it has completed the sale of Commercial Insurance Brokers (Pvt) Ltd to Commercial Bank of Ceylon Plc for 250 million rupees.

The sale will add 157 million rupees to the group level profits of Chemanex, the firm said in a stock exchange filing on Monday evening.
After the sale, the Chemanex share was trading 5.90 rupees up at 63.90 rupees on Tuesday afternoon.
On Monday, the chemical maker had also said that its profits for the June quarter fell 75 percent from a year earlier to 14.3 million rupees, amid falling sales. 
Chemanex had owned 239,999 shares in Commercial Insurance Brokers, signifying a 40 percent shareholding. The entire stake was sold.
Commercial Bank had owned 18.48 percent of the insurance brokerage’s shares according to the bank’s annual report for 2018.
The bank had been managing Commercial Insurance Brokers.
Chemanex, a subsidiary of CIC Holdings Plc, produces inks, packaging material and chemicals for both industrial and consumer use. (Colombo/Aug06/2019)

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