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Thursday May 13th, 2021
Finance

Sri Lanka’s Ceylinco Insurance share trust sells down holding

COLOMBO (EconomyNext) – A share trust of Ceylinco Insurance Plc, which held 22.86 percent of the firm has sold down an 11 percent stake to a consortium of buyers, an official said.

At 1602 rupees per share, the deal was valued at 3.5 billion rupees.

R Renganathan, Managing Director of Ceylinco’s Life Division said a consortium of investors had bought the stock, without elaborating.

CIESOT (Pvt) Ltd, the employee share trust and 4.57 million shares and it is required to liquidate its holdings this year under Sri Lanka’s securities holdings as perpetual trusts are no longer allowed.

On May 14, 2.19 million shares were traded.

Market sources said a bulk of the shares were bought by foreign investors, with speculation that at least one of the buyers was from India.

Ceylinco’s largest outside shareholder up to yesterday was Global Rubber Industries, with a 22.25 percent stake, which has been battling with the existing management to get on the board.

The third largest shareholder up to yesterday was Banque Pictet & Cie, a Swiss firm that provide wealth management services.

 

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