Dhammika back in the market

Once the famous market mover, Dhammika Perera last week returned to the Colombo Bourse collecting shares of Vallibel One Plc and Hayleys Plc for Rs. 50 million.

Under his personal name, he bought around 3.37 million Vallibel One Plc shares for Rs. 46 million and over 40,000 Hayleys shares for Rs. 14 million. In both entities he is the biggest shareholder.

In VONE Dhammika holds a 63% stake whilst in related parties Vallibel Investments and Vallibel Leisure he holds a further 17% stake whilst in Hayleys his direct holding is 45% in addition to a 2.4% stake by Vallibel One and 0.5% by Royal Ceramics.

Dhammika, who has effected over 10 takeovers via the market, said the key to sound investing in the Colombo Bourse is focusing on stocks which are attractive on net asset value.

Hayleys NAV is Rs. 242.13 per share, up from Rs. 208.61 in FY11 whilst Price Earnings Ratio is 10.72 times as against 42 times a year earlier. VONE’s net asset per share is Rs. 27.55, up from Rs. 25.55 in FY11.

VONE, which is the first holding company of select investments of Dhammika, owns controlling stakes in Royal Ceramics and LB Finance and a 15% stake in Sampath Bank in addition to control of Delmege Ltd., Orit Apparel Lanka Ltd. and Greenwater Ltd.

Dhammika together with Nimal Perera, originally the fund manager and now a business leader in his own right, have done 13 acquisitions. They include Asia Siyaka Commodities, Orit Apparel, Lewis Brown (Delmege Forsyth Group), Hotel Services (Ceylon Continental) via Hayleys Plc., Ever Paint and Chemical Industries, Hayleys Plc, LB Finance Plc, Pan Asia Bank Plc, Royal Ceramics Plc, Rupee Finance (now Vallibel Finance Plc), Horizon Hotel (now Fortress Resorts Plc), Hotel Reefcomber (Amaya Reef later sold and now Citrus Leisure Plc), and Connaissance de Ceylan (now Amaya Leisure Plc).