GREG buys near 10% of Pan Asia Bank for Rs. 614 m

Friday, 30 December 2016 00:00 - - {{hitsCtrl.values.hits}}

Lanka Century Investments Plc (GREG) yesterday bought a near 10% stake in Pan Asia Banking Corp Plc for Rs. 614 million.

It said the investment as “strategic” in diversifying its investments into the financial sector as part of its future growth strategy.

GREG has interests in Ceylon Leather Products Plc, Dankotuwa Porcelain Plc, Colombo City Holdings Plc, South Asia Textile Industries Lanka Ltd., Royal Fernwood Porcelain Ltd., and Browns Investment Plc . Yesterday’s investment signals its direct equity exposure to the banking sector.

Around 29.257 million PABC shares traded for Rs. 614.15 million accounting for 85% of the day’s turnover at the CSE. The share traded between a high of Rs. 20.40 and a low of Rs. 18.90 before closing at Rs. 19.80, up by 30 cents. The net asset value of PABC is Rs. 22 per share.

The deal, when it took place, triggered some excitement in the market which remained less buoyant due to the seasonal holiday mood.

However, the deal appeared almost like a transfer since the seller was CHC Investments, which is a joint-venture, equally owned by Galle Face Hotel Group fame Sanjiv Gardiner, investor Ajit Devasurendra and diversified family business Hirdarmani.

Tabrobane Holdings and Taprobane Equities control 83% of GREG. CHC Investments owns 57% of Taprobane Holdings.

Major shareholders of PABC include business leader Dhammika Perera (29.9%) and Japan’s Bansei Securities (15%). GREG is now the third largest shareholder.