SLIC sells 3.4% DFCC stake to EPF for Rs.1.2 b

Sri Lanka Insurance Corporation (SLIC) has sold 3.4% stake in DFCC Bank to Employees Provident Fund (EPF) for Rs. 1.2 billion.

Of the amount 7.9 million shares were sold Tuesday at Rs. 135 each whilst on Monday 1.24 million shares were sold at the same price. Monday’s sale was the entire stake held under SLIC’s General Fund.

As at June 2011, SLIC had 13% stake amounting to 34.4 million shares in DFCC Bank whilst EPF held 4.79% or 12.7 million shares.

Analysts attributed SLIC’s part shedding as part of booking profit. Last year the insurance giant reaped a staggering Rs. 15.5 billion in capital gains by shedding some of the old strategic holdings as well as trading its portfolio of dealing shares.

DFCC share finished the day up Rs. 4.20 or 3% to Rs. 136. The deal accounted for 41% of the turnover yesterday.

BOC is the single largest shareholder in DFCC Bank with a 15% stake.