SLIC buys 5% stake for a premium in Colonial Motors

Thursday, 6 October 2011 00:58 - - {{hitsCtrl.values.hits}}

Sri Lanka Insurance Corporation (SLIC) has this week bought an estimated 5% stake in Colonial Motors for over Rs. 190 million.

The acquisition was done on Monday when 489,200 shares of Colonial traded for Rs. 236 million.

Among the traded were two crossings involving 400,000 shares at Rs. 480 each with the buyer being SLIC. Sellers were Colonial’s controlling shareholder The Colombo Fort Land and Building Co. (CFLB).

In August CFLB bought a 12% stake at Rs. 290 per share whilst it already owned a 52% stake. The seller was Dr. T. Senthilverl. Via this week’s sale, CFLB had made a tidy capital gain as the sale price was Rs. 480, which is Rs. 261 or 90% above the price it paid in August in acquiring a 12% stake.

Last week Colonial share price dipped by Rs. 20.70 to close at Rs. 466.30 whilst its 52-week highest is Rs. 530.