Dhammika mulls Rs 2.8B deal

[SrirangaVeteran]

By Ravi Ladduwahetty

Ceylon FT: High net worth investor Dhammika Perera has offered to buy a 51% stake of Free Lanka Capital Holdings PLC for Rs. 2.8 billion, sources said. It is a transaction worth Rs 2,790 million for 697 million shares of the 1,368 million shares which constitutes the issued capital at Rs 4 per share, market sources told Ceylon FT yesterday. One of the reasons for the divestiture of the company...


is that the Free Lanka Capital Holdings was heading in different directions in the aftermath of the demise of the founder Kattar Aloysius and with the second and the third generations pulling the group in different directions and the staggering overnight drop in the post tax profits in a single year, they said.


Of the key shareholders of the company are Free Lanka Joint Venture Company (Pvt) Ltd which owns 54.68% of 767.6 million shares while Browns Investments PLC and Perpetual Holdings (Pvt) Ltd own 43 million shares each. One of the further salient points of the group's performance is that the turnover for the year ended 31 March, 2014 was increased to 4.6 billion from the Rs 4.2 billion a year ago, but the post tax profits between the years had nosedived from a billion rupees to Rs 25.6 million.


One of the key attractions of the Free Lanka Group is that it owns Maturata Plantations and partly owns Pussellawa Plantations and it is one of the largest wine importers in the country. They also said that the deal was going to be sealed by Ernst and Young, Chartered Accountants.


However, Dhammika and Free Lanka Capital Holdings PLC CEO Goddfrey Aloysius was not available for comment despite repeated attempts to contact them and all the call back messages. Dhammika's business partner Nimal Perera denied any knowledge of the proposed acquisition.
www.ceylontoday.lk

[sashimaalTop contributor]

Good if this happens. We haven't seen FLC moving for a long time...

[NuinthTop contributor]

Thx for sharing.

That's why we saw strange order book in last few days. Further I saw different stories also flying here & there.

I think FLCH well future potential company with good NAV. They diversifying their business in tea, hydro power, tourism, property etc etc.

We can see how market react for this tomorrow.

Good luck.

[WARREN BSL]

Tomorrow my target price is 2.60

[Top TraderTop contributor]

Now this news was in Yesterday's paper, if that is the case, why CSE & SEC didn't stop the trading and asked for the explanation from the company.

So far more than 21 Mn shares traded today!!!

[KDDNDTop contributor]

Now this news was in Yesterday's paper, if that is the case, why CSE & SEC didn't stop the trading and asked for the explanation from the company.

So far more than 21 Mn shares traded today!!!

What if this deal is currently at the very primitive stage of planning,,,???
Do they still want to declare....???

But if this deal is almost finalised...... Yet to be documented....
Is it again have to published?????

Or else when is it exactly they should publish???
If they themselves don't have manipulating plan??

.......
But since there is a news papers article....then ...........!!!!   

[Top TraderTop contributor]

Now this news was in Yesterday's paper, if that is the case, why CSE & SEC didn't stop the trading and asked for the explanation from the company.

So far more than 21 Mn shares traded today!!!

What if this deal is currently at the very primitive stage of planning,,,???
Do they still want to declare....???

But if this deal is almost finalised...... Yet to be documented....
Is it again have to published?????

Or else when is it exactly they should publish???
If they themselves don't have manipulating plan??

.......
But since there is a news papers article....then ...........!!!!   

Here it appears in the news paper and i feel, that article also had some impact on today's trading.

I have noticed in the past, when this kind of paper articles appear, CSE/SEC used to halt the trading and ask for explanation, but i didn't see any activity like that today

[smalta]

Last time i remember what nimal perera done to PCH when it was at 17. He bought a large quantity from rishan and dump to market booking only 2 rupee profit from share.

[KDDNDTop contributor]

Now this news was in Yesterday's paper, if that is the case, why CSE & SEC didn't stop the trading and asked for the explanation from the company.

So far more than 21 Mn shares traded today!!!

What if this deal is currently at the very primitive stage of planning,,,???
Do they still want to declare....???

But if this deal is almost finalised...... Yet to be documented....
Is it again have to published?????

Or else when is it exactly they should publish???
If they themselves don't have manipulating plan??

.......
But since there is a news papers article....then ...........!!!!   

Here it appears in the news paper and i feel, that article also had some impact on today's trading. Yeah TopTrader - of curse i agree there was an impact. surely this is due to newspaper ad..... but this trading volume could be due to..
1. not DP but others start trading based on the fact in news paper
2. this could be both traders and DP acting
3. this could be only DP act - but i don't believe this.

but in anyway if newspaper ad is wrong and false then DP party need to provide clarification.... as soon as possible..... VERY IMPORTANT!!!
but if it is partly true.... then they may take more time until this deal is reasonably finalized - at least up to publishable level .........
waiting GAME!

I have noticed in the past, when this kind of paper articles appear, CSE/SEC used to halt the trading and ask for explanation, but i didn't see any activity like that today

here too i agreed with you TT

[slstockVeteran]

Top Trader,

Yes, I agree there is something not right about this news.

Now this news was in Yesterday's paper, if that is the case, why CSE & SEC didn't stop the trading and asked for the explanation from the company.

So far more than 21 Mn shares traded today!!!

What if this deal is currently at the very primitive stage of planning,,,???
Do they still want to declare....???

But if this deal is almost finalised...... Yet to be documented....
Is it again have to published?????

Or else when is it exactly they should publish???
If they themselves don't have manipulating plan??

.......
But since there is a news papers article....then ...........!!!!   

Here it appears in the news paper and i feel, that article also had some impact on today's trading.

I have noticed in the past, when this kind of paper articles appear, CSE/SEC used to halt the trading and ask for explanation, but i didn't see any activity like that today