Japanese founder sells 2.3% stake in Dankotuwa

Founder investor Japan’s International Ceramic Inc. (ICI) in a surprise move shed a 2.3% stake out of a total of 8.35% last week to the market.

The shedding of 1.65 million shares or 2.3% was via three separate transactions throughout the week.

The blocks sold involved 0.359 million shares, 0.550 million shares and 0.740 million shares at prices ranging between Rs. 52.87 and Rs. 51.20 per share. As at 31 March 2011, ICI held six million shares of 8.35% stake and last week’s shedding amounts to 28% of its stake.

With the part sale, ICI moves down to third largest shareholder with Ceylon Leather moving up as the second biggest with a stake of 8.3% behind parent Environmental Resources Investment owning 58.36% stake.

In total Dankotuwa Porcelain saw slightly over four million of its shares changed hands via 2,422 trades last week for Rs. 208 million, closing up 90 cents to Rs. 47.50 whilst its intra-week highest was Rs. 57.70.

Analysts viewed ICI’s unloading of stakes into the market unusual as it was a founder and second biggest shareholder. Some attributed it to booking profit. Prior to ERI-led consortium investing in Dankotuwa Porcelain, ICI held a 25% stake.