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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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

State of the economy of Sri Lanka

Saturday, 21 September 2019

I am not an economist nor do I profess to be an economic analyst. The views expressed in this presentation are those of a layman who has always been interested in the economic progress of Sri Lanka.

Premadasa, Père et Fils

Saturday, 21 September 2019

We are what time, circumstances and history has made of us. We are trapped in history. At age 77, I refuse to trap history in my mind. This essay is an obligation to history. Although J.R. Jayewardene introduced ‘Executive Presidentialism’, coer

Economy, business community and the Prime Minister

Friday, 20 September 2019

The speech made by Prime Minister Ranil Wickremesinghe as the Chief Guest of the Sri Lanka Economic Summit 2019 deserves very careful consideration by the country due to several reasons. This will no doubt be his last speech on economic policy to be

Sri Lanka needs to invest more on soft infrastructure

Friday, 20 September 2019

Developing countries like Sri Lanka will have to prepare for further downside risks in 2020 with the growing debt problems and the growth problems in Europe and the slowdown in Asia. Slower growth is already visible in weakening global trade and comm

Columnists More