SLT, Lanka Hospitals reveal Govt. divestiture plans

Sri Lanka Telecom PLC and Lanka Hospitals Corporation PLC, yesterday formally revealed plans of Government divestiture. SLT said the Treasury Secretary informed its Board of Directors that the Cabinet of Ministers has granted approval in principle for the divestment of its stake.

“The divestment will be implemented by the State-Owned Enterprise Restructuring Unit established under the Finance, Economic Stabilisation and National Policies Ministry subject to following the due process,” SLT CEO Janaka Abeysinghe said in a filing to the CSE.

Lanka Hospitals Corporation in its filing said the Treasury Secretary has conveyed to its Board an “Approval in Principle” granted by the Cabinet for the divestment of the major shareholding in the Company. In SLT, the Treasury Secretary owns 49.50% whilst Malaysia-owned Global Telecommunications Holdings NV holds 44.98% stake.

In Lanka Hospitals, Sri Lanka Insurance Corporation owns 51% stake. The other major shareholder is Fortis Healthcare International Ltd. with 28.6% stake. Bank of Ceylon subsidiary Property Development PLC owns 9.5% stake as well.

Both disclosures were made after the market was closed. Earlier in the day SLT share price gained by Rs. 5.40 or 7% to close at Rs. 84.60. Its net asset value per share as at 31 December 2022 was Rs. 44.98.

Lanka Hospitals share price yesterday gained by Rs. 4.25 or 4% to close at Rs. 111.50. Its net asset value per share as at 31 December 2022 was Rs. 38.53. Its public float is 4.77% held by 12,952 shareholders.