Rayynor gets bullish on banking, buys 9.75% of DFCC for Rs. 3.6 b

Friday, 22 November 2024 04:17 - - {{hitsCtrl.values.hits}}

Rayynor Silva

Ishara Nanayakkara controlled entities generate Rs. 7 b cash from exit from DFCC

High net worth individual and electronic media baron Rayynor Silva signalled his continuous bullish outlook on the banking sector by buying 9% stake in DFCC for Rs. 3.6 billion.

Rayynor’s investment arm Phantom Investments Ltd., picked up 9.75% stake or 42.2 million shares at Rs. 85 each in a deal worth Rs. 3.58 billion. The seller was LOLC Investment Holdings which means business leader Ishara Nanayakkara has exited from DFCC which was once Sri Lanka’s first development finance institution. Last week Ishara linked Don and Don Holdings exited from DFCC selling a near 9% stake for Rs. 3.3 billion to Ambeon Capital PLC as exclusively reported by the Daily FT yesterday. However Ishara controlled companies own 10% stake in HNB which in turn holds 12.47% stake in DFCC Bank and separately Browns owns 10.5% stake in Seylan Bank and 15% stake in SANASA Development Bank.

Overall, DFCC saw 43.37 million shares traded for Rs. 3.68 billion. Of that 42.35 million shares were done at Rs. 85 per share via 7 crossings.

Rayynor told the Daily FT that the investment into DFCC was “strategic and long term” as he sees good upside going forward.

DFCC is Rayynor’s second major investment in the banking sector. In June he stepped up buying into Sampath Bank holding 10% stake (with Rs. 7 billion investment) accounting for the second largest shareholder after business tycoon Dhammika Perera-controlled Vallibel One PLC.

Rayynor paid around Rs. 56 and Rs. 58 per Sampath Bank shares in June whereas yesterday Sampath Bank closed at Rs. 93.70.

Rayynor is also the third largest shareholder of Dhammika Perera-controlled Hayleys PLC with over 5% stake.