Rs. 630 m windfall for Aitken Spence from port venture exit

Friday, 27 January 2012 04:00 - - {{hitsCtrl.values.hits}}

Aitken Spence Plc disclosed yesterday that it would get Rs. 630 million as capital gain from the sale of its 30% stake in the operating company of the upcoming Colombo South Container Terminal.

Joint venture partner China Merchants Holdings International Ltd. (CMHI) has agreed to buy Spence’s 30% stake in the operating company Colombo International Container Terminals Limited (CICTL). The exit was after the Spence Board decided it was in the best interests of the company and shareholders.

“The sale was on normal commercial terms, which have been determined through arms-length negotiations between the parties. SPEN is expected to realise a capital gain of approximately Rs. 630 m on the sale of its stake in CICTL,” the diversified blue chip said.

“We are very pleased that having attracted CMHI to partner us as the sole bidder for the development and operations of the Colombo South Container Terminal, the project has now commenced, which is in the greater interests of the country,” Spence added.

The announcement of the windfall however had no effect on investor sentiment or Spence’s share price as it closed at Rs. 109.50, down by 50 cents with 20,000 shares traded.

Aitken Spence is expected to announce third quarter results soon, though the Rs. 630 million capital gain will be reflected in fourth quarter accounts.

In the first half FY12, Spence’s bottom line amounted to Rs. 1.13 billion, marginally up from Rs. 1.04 billion a year earlier. Profit after tax was static at Rs. 1.4 billion.