Harry’s Melstacorp adds plantations, leisure to investment portfolio

Tuesday, 26 June 2012 03:12 -     - {{hitsCtrl.values.hits}}

Business tycoon Harry Jayawardena-controlled Distilleries Company of Sri Lanka (DCSL) subsidiary Melstacorp Ltd. has added plantations to its investment portfolio in addition to expanding interests in leisure.

Via transfers, Melstacorp acquired 31% stake in Madulsima Plantations Plc and 43% stake in Balangoda Plantations Plc from its parent DCSL as well as 41.7% stake in Browns Beach Hotels Plc in a total deal worth Rs. 1.04 billion.

The stake in Balangoda amounted to 10.2 million shares done at Rs. 23.60 each (worth Rs. 240.7 million), and in Madulsima it amounted to nine million shares at Rs. 9.10 per share (Rs. 82 million). Browns Beach stake was 54.065 million shares at Rs. 13.30 (Rs. 719 million).

Madulsima’s stock price closed unchanged at Rs. 9.50 and Balangoda in similar fashion at Rs. 23.50. Browns Beach closed 10 cents down to Rs. 13.90.

For DCSL at cost Balangoda Plantations Plc stake was Rs. 430 million whilst that of Browns Beach was Rs. 1.2 billion and Madulsima stake was Rs. 90 million.

Mesltacorp is being developed as the holding company of DCSL’s investments. It already owns Lanka Bell Ltd., and has investments in financial services via Melsta Regal Finance Ltd., Continental Insurance, whilst in manufacturing investment is in Texpro Industries. It also has a Logistics venture and deals in beverages via Periceyl Ltd.

Top banker and former Commercial Bank MD Amitha Gooneratne is the Managing Director of Melstacorp Ltd, which also holds stakes in JKH and Aitken Spence among others.

Board of Directors of Melstacorp Ltd., comprises D.H.S. Jayawardena (Chairman), Amitha Gooneratne (Managing Director), C.R. Jansz, Capt. K.J. Kahanda, R.K. Obeyesekere, C.F. Fernando, Dr. A.N. Balasuriya, Niranjan Deva Aditya.