Scramble for 5% Sampath stake

Thursday, 4 October 2012 02:11 - - {{hitsCtrl.values.hits}}

There was a scramble for a 5% stake in Sampath Bank, sold by an in-house employee fund for Rs. 1.7 yesterday.

In total 8 million shares or 5% stake of Sampath traded for Rs. 1.69 billion, accounting for 56% of the day’s turnover. Of that a stake held by employees via Account Number 2 amounting to 7.6 million shares was divested at Rs. 210 each. The move was to raise cash for the employees fund as well as boost liquidity.

The block in Sampath, majority shareholder of which is business leader Dhammika Perera, had been vied by several including high net worth investors and foreign funds.

High net worth family Captains secured the most of the shares worth Rs. 900 million. Three foreign funds collected around Rs. 500 million worth of shares.

Captains, one of the biggest investors and traders in the Colombo Bourse, already control 7% stake in HNB, apart from having the largest stake in premier blue chip JKH as well as CIC Holdings.

Leading up to yesterday, Captains have been collecting available quantities of Sampath apart from picking up several new stocks such as Asiri as part of trading.

CTC was the buying and selling broker for bulk of the deal. Among others who collected quantities were ETF and Ceylon Guardian along with a few other institutional investors and a select few high net worth investors and active retailers. Sampath share peaked to a high of Rs. 215 before closing at Rs. 210.10, down by Rs. 4.20.

As at June 2012, Sampath Bank Account No 2 held 7.99 million shares or 4.92%. Via Varners International and SSP Corporate Services a further 7.3% is controlled along with Sampath Bank Account Number 4, which holds 1.63%.

Via Vallibel One, Dhammika Perera, who is also the Chairman of Sampath Bank, controls a 15% stake, whilst other major shareholders of the third largest private bank are Indra Silva (nearly 10%), and Rosewood Ltd. (7%), whilst EPF holds 10%.

Market talk was that Dhammika was keen that the block was bought by a friendly local party or by foreigners, whilst perhaps eyeing future capital gain, Captains were equally keen to acquire as much as possible.