Ceylinco Insurance gets biggest outside shareholder

A consortium including two export firms has bought 11.5% stake in Ceylinco Insurance Plc., thereby becoming the single largest shareholding group from outside.

The consortium comprises P. Subasinghe, Global Rubber Industries Ltd. and Global Sea Foods Ltd. The 11.5% shareholding was as at Tuesday when 842,100 shares or 4.2% stake traded for Rs. 419 million. Within the trades were five crossings including 625,000 shares done at Rs. 500 each, which was higher by 17.5% or Rs. 74.30 from its previous close. Ceylinco’s all time high price is Rs. 680.

None of the parties in the consortium figured in the top 20 shareholders of Ceylinco Insurance as at 30 September, 2010 which suggests that the 11.5% stake had been collected in recent months. Incidentally Subasinghe’s or Global Sea Foods last month decried the worsening competitiveness of perishable exports and it couldn’t be confirmed whether the company was trying its fortunes in listed equities given the Colombo bourse’s world records.

Business tycoon Lalith Kotelawala founded private firm Ciesot Ltd owns 23.54% in Ceylinco Insurance thereby remaining as the biggest shareholder. As at September 2010, the second largest shareholder was Pictet and Cie which owns 10.68%.

Ceylinco didn’t trade yesterday whilst its non-voting saw 600 shares changing hands before closing at Rs. 275, down by Rs. 5.90.