Carson’s spread cheer to shareholders

Tuesday, 2 November 2010 06:24 - - {{hitsCtrl.values.hits}}

Top conglomerate Carson Cumberbatch Plc yesterday made shareholders merry ahead of the season with value enhancing twin announcements.

The Company said its Board resolved to sub divide shares on the basis of one into two followed by a capitalisation of Rs. 496.4 million out of the total reserves of Rs. 6.5 billion. Carson’s total number of ordinary shares currently in issue is 96,268,095 and post sub division it will increase to 192,536,190 shares.

The directors also resolved to recommend to shareholders to issue 3,850,724 new ordinary shares by capitalising its revenue reserves and issue one ordinary share for each 50 held post sub division.

The consideration for the shares to be issued and credited as fully paid up would be Rs. 128.91 per share. Both moves are subject to shareholder and regulatory approval.

The twin announcement came after the market was closed but investor sentiment on Carson share has remained lively. The Company saw 17,700 of its shares traded between a high of Rs. 1,149 and a low of Rs. 1,079.90 before closing at Rs. 1,147.60 up by Rs. 73.10. Yesterday’s gain was on top of Rs. 96.40 increase last week.

Since last week Carson has been enjoying the status of second most valuable stock in the Colombo bourse with a market capitalisation of Rs. 110.4 billion as of yesterday. Given its all time high of

Rs. 1,198, some analysts see scope for further upward movement in the price on the strength of yesterday’s shareholder value enhancing twin announcements.