EPF sheds minor Cold Stores stake with hefty capital gain

Monday, 18 August 2014 00:02 - - {{hitsCtrl.values.hits}}

The Employees Provident Fund (EPF) had sold a small parcel of Ceylon Cold Stores (CCS) shares last week, but at a hefty capital gain. Market sources said EPF was among the sellers of CCS last week which saw 1.05 million of its shares traded for Rs. 249 million and figured as the fifth largest in turnover. EPF, which had 1.2 million shares (or a 1.3% stake) as at June 2014 in CCS, had sold a block of 500,000 shares at Rs. 245 each in a deal worth Rs. 122.5 million. Some analysts speculated EPF, which has been a longstanding shareholder at CCS, had acquired the stake sometime back at Rs. 20 level. On that basis, the price fetched last week of Rs. 245 reflects a massive capital gain. It couldn’t be confirmed why EPF sold a small block or whether it was planning to exit CCS. However, thanks to impressive earnings and a re-rating of its prospects, CCS last week established a new 52-week high of Rs. 250 before closing at Rs. 247.50, up by Rs. 37.50 or 18%. It figured among Top 10 turnovers. The previous 52-week highest was Rs. 220. The highest price CCS traded in June quarter was Rs. 165 and last week’s closing reflects a Rs. 85 increase or whopping 51.5% increase. JKH and related parties hold an 80% stake in CCS and EPF was the fourth largest shareholder as at 30 June 2014. Net asset per share of CCS is Rs. 106.73, down from Rs. 109.77 from 31 March 2014. In the first quarter CCS posted a consolidated pre-tax profit of Rs. 416.4 million, up by 88%. Net profit attributable to equity holders of parent was Rs. 299.3 million, up from 87%. Group revenue grew by 18% to Rs. 6.7 billion.

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