Distilleries richer by Rs. 455 m

Cash rich-Distilleries Company is to become richer by Rs. 455 million following the divestiture of 70% stake in pioneering unit trust National Asset Management Ltd., (NAMAL).

The stake will be sold to on the basis of 51% to Union Bank of Colombo Ltd. and 19% to Ennid Capital Pvt Ltd.

Distilleries said a share sales and purchase agreement has been signed and the sale is subject to regulatory approval.

The stake is held by Distilleries subsidiary Milford Holdings Ltd. and the sale is expected to realise a capital gain of approximately Rs.325 to 375 million.

In December Distilleries Group got Rs. 5.7 billion from the Government in lieu of original investments made to acquire 510.2 million shares in Sri Lanka Insurance Corporation.

As at 30 September, 2010, Distilleries had Rs. 15.8 billion in revenue reserves whilst that of the Group amounted to Rs. 18.5 billion.