Ambeon Capital buys 9% DFCC stake for Rs. 3.3 b; says move is strategic

Thursday, 21 November 2024 00:28 - - {{hitsCtrl.values.hits}}

Ambeon Capital PLC, under new owners, last week acquired a 9% stake in DFCC Bank for Rs. 3.3 billion with the move described as “strategic and long-term.”

On 13 November, the day before the General Election, 38.98 million shares of DFCC Bank traded at Rs. 85 per share via 9 crossings. Overall, 40.9 million shares traded for Rs. 3.4 billion accounting for 50% of Wednesday’s turnover.

The seller was Don and Don Holdings Ltd., which held around 40 million shares as at 30 September 2024. The market analysts speculate Don and Don is related to controlling shareholders/management of LOLC Holdings. Separately, LOLC Investment Holdings Three Ltd., owns a 9.75% stake in DFCC Bank.

Sources close to Ambeon Capital said the acquisition was “strategic and long-term” as it sees future upside and compliments with some of its plans in the financial service sector.

Ambeon Capital shares of late have seen brisk activity. On Monday 14.5 million of its shares traded for Rs. 213 million of which 12.8 million were done at Rs. 14.70 each via a crossing. Yesterday Ambeon Capital closed at Rs. 16 with 5.3 million shares traded.

In April, control of Ambeon Capital changed after business leader Sanjeev Gardiner owned CHC Investment Ltd., holding a 54% stake sold out.

AARC Capital which held over 35% too sold down. A consortium of foreign funds and foreign-cum-local high networth investors were the buyers. New investors include EMFI Capital Ltd., (9.5%), ATX Partners (9.34%), Arcasia Investments and Trading (7.5%) apart from Ambeon Consolidated Ltd., 50%.

Ambeon Capital Group has interests in footwear, manufacturing porcelain, investments, property, financial services and IT and related services including Millennium ITESP. Ambeon Holdings PLC also made Millennium ITESP a fully owned subsidiary as part of restructuring of the Group (See https://www.ft.lk/front-page/Ambeon-makes-Millennium-ITESP-a-wholly-owned-subsidiary/44-760442).

HNB owns 12.47% stake in DFCC Bank and Bank of Ceylon holds 1-0.46%. LOLC related party Browns Group owns 10% stake in HNB as well. Separately Browns owns 10.5% stake in Seylan Bank.