Finco buys controlling 26% stake in Serendib Land for Rs. 125.6 m

Finco Holding Ltd. on Monday acquired a controlling 26.2% stake in Serendib Land PLC for Rs. 125.6 million. The stake amounting to 104,673 shares was done at Rs. 1,200 per share. 

In total Serendib Land saw 111,147 shares change hands via 399 trades for Rs. 134.8 million. 

The share price closed at Rs. 1,206.75, down by 31% or Rs. 549.50 from its previous close. Net asset per share is Rs. 1,663.80 as at 30 September 2021. Earnings per share was Rs. 14.36, down from Rs. 15.27 a year ago.

Gitanjali Group (71,850 shares) and Director D. Sivaprakasapilla (32,823 shares) were the sellers. 

Serendib Land was loosely held with no clear controlling or major shareholder. As at 30 September 2021 Gee Gees Properties and related parties own around 21%, Janashakthi Insurance holds 12.85% and AIA Insurance holds 7%.

Following the sale, Serendib Land yesterday bounced back to close at Rs. 1,417.75, up by Rs. 211 or 17.5% with 1,103 shares changing hands via 83 trades for Rs. 1.6 billion.

As at 30 September 2021 the public float of Serendib Land was 17.17% with 324 shareholders. 

The principal activity of the company is leasing of office premises for commercial purposes. 

Total assets of the company were Rs. 653.5 million as at 30.9.2021 as against Rs. 647.5 million as at end-FY21. The company’s capital and reserves were Rs. 599 million including retained earnings of Rs. 117.7 million and other reserves worth Rs. 380 million. 

Liabilities were Rs. 54.5 million. In the first half of FY22, revenue amounted to Rs. 13.5 million lower from Rs. 14.4 million a year ago and net profit was Rs. 10.45 million, down from Rs. 11.5 million.

In FY21 Serendib Land recorded a turnover of Rs. 28.4 million and a Profit Before Tax of Rs. 22.5 million as against Rs. 26.3 million (including the Revaluation Gain of Rs. 63.25 million) and Profit Before Tax of Rs. 85 million in FY20.