Shankar picks up more Brown shares for Rs. 120 m

Wednesday, 8 December 2010 00:28 - - {{hitsCtrl.values.hits}}

High networth investor and director Shankar Somasunderam has picked up more stakes in Brown and Company at a cost of Rs. 120 million.

On Monday he bought around 0.6% stake or 0.475 million shares bulk of it at Rs. 250 each. Shankar is already the single largest individual shareholder with a stake of slightly over 3% as at September 2010.

Control of Brown’s is shared between Shankar, Ajit Devasurendra and Ishara Nanayakkara.

On Monday a total of 0.529 million Brown shares traded between a high of Rs. 251 and a low of Rs. 245 before closing at Rs. 248.70, up by Rs. 2.30. Yesterday 100,700 Brown shares traded between a high of Rs. 255 and a low of Rs. 245 before closing at Rs. 250.20, up by Rs. 1.50. In the September ended quarter, Brown’s highest share price was Rs. 228 and closed at Rs. 225.60.

Brown’s buy 9.5% stake in Seylan for Rs. 1.24 b

Brown and Company Plc has recently bought 9.55% stake in Seylan Bank for Rs. 1.24 billion.

Brown’s had bought the stake from Browns Investments Ltd., which is a joint venture with Taprobane Holdings Ltd.

Sources said that the deal was more realigning the investment portfolio.

Connected parties Browns and LOLC Group originally held 20% stake in Seylan and following a directive from the Central Bank the stake has been now reduced to 19.1%. LOLC shareholding of 9.55% is held by its subsidiary LOLC Investments. Following the part shedding LOLC now treats Seylan stake as part of investment in securities and the adjustment to bring the investment to market value which resulted in the group recognising a gain of Rs.1.7 billion in the consolidated first half financial statements.

Recently Brown’s Group also sold 5.7 million voting shares held at HNB and realised a net gain of Rs.1.2 billion. Following the sale Brown’s Group holding in HNB is 13.2 million shares or 7%.