Lalith Kotelawala ups stake in Ceylinco Insurance

Thursday, 8 March 2012 00:28 - - {{hitsCtrl.values.hits}}

He may be serving bail and facing wrath of Golden Key customers, but the estranged founder Lalith Kotelwala’s craving for Ceylinco Insurance appears to be insatiable.

Kotelawala has bought 18,141 shares during the quarter ended on 31 December 2011 thereby increasing his stake to 54,886 or 0.27% and moving up one position to be the 16th largest shareholder of Ceylinco Insurance.

In the top 20 list of shareholders of Ceylinco Insurance the only movement was that of Kotelawala.

Shares of Ceylinco are illiquid and at Tuesday’s closing price of Rs. 689.90, Kotelawala’s stake is valued at Rs. 38 million.

In the December 2011 quarter during which Kotelawala had purchased additional shares, he could have spent anything between Rs. 10.8 million (lowest price of Rs. 600) and Rs. 14 million (highest price of Rs. 774.60) or Rs. 13.5 million as per the closing price of Rs. 746.70.

Ceylinco Insurance has declared a dividend of Rs. 6.50 for 2011 financial year and Kotelawala as a shareholder will get some cash as well.

Mid February irate and long suffering customers of Golden Key demonstrated urging authorities to put Kotelawala back in jail for their dues unsettled for three years and as he had violated the undertaking given to the Supreme Court as bail condition.

The Ceylinco group has put on sale several of its subsidiaries and properties to raise funds to repay depositors of Golden Key.

Last year, Kotelawala quit the Ceylinco Insurance Board after being absent for several years. Though listed for re-election, he quit the Board saying he “will not be available for re-election as a director of Ceylinco Insurance due to personal reasons”. In July last year Kotelawala was released on bail following an order given by Colombo High Court Judge Deepali Wijesundara. Along with Kotelawala seven others have been accused of massive fraud at the collapsed Golden Key Credit Card Company. The Colombo High Court released Kotelawala and the other accused members on a Rs. 5 million surety bail each.

Following the collapse of the Ceylinco Group affiliated Golden Key credit card company, Kotelawala, who was the Chairman of the company and seven others were indicted in the Colombo High Court for the alleged misappropriation of Rs. 4.1 billion.

The court has served indictment papers on each of the accused and an arrest warrant had also been issued on the sixth accused, Sicille Kotelawala who was not present in court.