Home / Front Page/ DCSL-Melstacorp deal gets SEC nod

DCSL-Melstacorp deal gets SEC nod

Comments / {{hitsCtrl.values.hits}} Views / Friday, 30 March 2018 00:00


The Securities and Exchange Commission has approved the off-the-floor transfer of approximately 7.5% of Distilleries Company (DCSL) shares to the shareholders of Melstacorp Plc as of the ex-dividend date. Melstacorp announced in February this year that it would give eight DCSL Plc shares for every 27 Melstacorp Plc shares held as a dividend in specie.

This will allow the recommencement of trading of the DCSL Plc share on the Colombo Stock Exchange. The share was suspended on the request of the company in August 2016 to facilitate a swap of shares that made Melstacorp Plc the holding company of the group which also owns DCSL Plc. 

The other companies Melstacorp Plc owns include Lanka Bell Ltd, Continental Insurance Lanka Ltd, Melsta Regal Finance Ltd, Melsta Logistics Ltd, Balangoda Plantations Plc and Madulsima Plantations Plc. Melstacorp Plc also owns almost 50% of the listed diversified conglomerate Aitken Spence & Co. Plc. Harry Jayawardena is the Chairman of the Melstacorp Group.     

Sources from Melstacorp Plc expect the DCSL share to trade at much higher multiples than the multiple the company had when it was a diversified company. DCSL Plc now is purely a liquor manufacturing and marketing company. Internationally listed liquor companies trade at very high multiples compared to other sectors.   

Share This Article

Facebook Twitter


1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.


Today's Columnists

Implementing SC Orders

Wednesday, 26 June 2019

The Supreme Court on 18 April has ordered six Ministries, their Secretaries and three Government authorities to take immediate several effective measures to be enforced in the design and construction of all parts of new buildings and services the pub

Need for an education revolution: Future of our kids and the nation is at risk – Part I

Wednesday, 26 June 2019

It is said that a country is only good as her people. A country belongs to her people. In a democratic country, people elect the leaders to manage the country on their behalf. Hence, to be hailed as a progressive country, it is paramount for a countr

Universalism versus tribalism

Wednesday, 26 June 2019

The most venerable Warakagoda Sri Gnanarathana Thero Mahanayake of the Asgiriya chapter has announced that his recent remarks, have been misconstrued and distorted. The authenticity of recorded information in cyber space is an inconvenient truth of t

A sermon on stoning

Tuesday, 25 June 2019

It is generally assumed we have passed the Stone Age, the Bronze Age, the Iron Age, the Industrial Age, and the Space Age.After a breath-taking dive in to the Digital Age, we are well on our way to the Age of Automation and Artificial Intelligence. N

Columnists More