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Friday Nov 15, 2024
Tuesday, 8 December 2015 00:33 - - {{hitsCtrl.values.hits}}
Lanka Hospital Corporation Plc (formerly Apollo Hospital) triggered retail investor interest yesterday after two big firms expressed keenness to bid for the Government stake in it.
The market saw around 0.44 million shares of Lanka Hospital (LCHL) changed hands via 305 trades for Rs. 27.7 million turnover. The share touched an intra-day high of Rs. 63.60 before closing at Rs. 62, up by Rs. 1.10 from Friday. Yesterday peak bettered the previous 52-week high of Rs. Rs. 62.70,
Last week only 0.27 million shares of LHCL changed hands via 271 trades though it closed 80 cents up whilst on Friday it gained by Rs. 1.90.
Analysts attributed renewed activity and demand after Hemas Holdings Plc (which owns Hemas Hospitals) and Softlogic Holdings (which owns Asiri Hospitals) disclosed that they will bid for controlling stake in LHCL held by the Government if and when the State decides to divest.
In 2016 Budget Finance Minister Ravi Karunanayake listed LHCL among entities in which state holding will be sold via the stock market. Via Sri Lanka Insurance Corporation the State controls 54.6% stake in LHCL. Separately Bank of Ceylon subsidiary Property Developments holds a further 9.5% stake.
Keenness by Softlogic and Hemas is despite Singapore-based Fortis Global Healthcare owning 28.6% stake in LHCL. Some analysts speculated that if Fortis too expresses interests then LHCL will draw widespread attention, boosting prospects for the Government to raise extra revenue via the divestiture. As of September 2015, net asset per share of LHCL was Rs. 22.26, up from Rs. 20.34 as at December 2014. Its capital and equity amounted Rs. 5 billion including Rs. 1.3 billion in retained earnings.
