Global Rubber consolidates Ceylinco Insurance holding

Global Rubber Industries on Monday consolidated its holding in Ceylinco Insurance via an in-house deal, although at a premium.

The company bought 112,000-voting-shares block (around 0.5% stake) at Rs. 850 each (up by Rs. 125 or 17% from previous close) from related party Prabash Subasinghe, who as at end last year held 1.04 million shares.

It also collected a further 2,700 shares of Ceylinco from the market.

In total 116,275 shares of Ceylinco traded for Rs. 193.4 million on Monday before closing at Rs. 759.30, up by Rs. 34.30.

On Tuesday Global Rubber Industries collected a further 38,000 voting shares of Ceylinco Insurance, price of which closed down by Rs. 37.30 to Rs. 722 whilst it hit an intra-day high of Rs. 800. Yesterday no voting shares of Ceylinco traded.

Global Rubber Industries owned by the Subasinghe family is estimated to be owning a nearly 30% stake in Ceylinco Insurance, thereby becoming the single largest shareholder outside the Ceylinco-connected entities. As exclusively reported by the Daily FT on Friday, Global Rubber Industries bought 0.2% or 42,700 shares at Rs. 700 per share.