Nandana nestles on top of HNB with Rs. 14 b buy of Ishara’s 9.9% stake

Wednesday, 28 May 2025 00:10 - - {{hitsCtrl.values.hits}}

Onyx Group Of Companies Chairman Nandana Lokuwithana

Tycoon Nandana Lokuwithana pays Rs. 305-313 per share as Ishara Nanayakkara’s Browns Investments sells voting shares at hefty profit in second largest private sector commercial bank whilst retaining 45.87% of non-voting shares
Mega deal propels CSE turnover to nearly Rs. 19 b; boosts HNB share price by Rs. 17.25
With interests in steel, tyres, construction, real estate, and hospitality, Nandana becomes single largest shareholder at HNB
Acquisition through Ceylon Steel Corp. promoting dominant Lanwa brand
Late Harry Jayawardena-controlled companies collectively hold 17.8% voting stake in HNB

Expanding his business empire, low profile tycoon Nandana Lokuwithana yesterday forayed into commercial banking, investing over Rs. 14 billion to buy a strategic voting 10% stake in Hatton National Bank (HNB).

Lokuwithana owns Onyx Group Of Companies based in the UAE and Sri Lanka with extensive interests in steel manufacturing (Lanwa), construction, real estate, and hospitality. He also owns Ferentino Tyre Corporation, a leading brand in Sri Lanka with growing exports.

He bought the stake from another tycoon Ishara Nanayakkara controlled Browns Investments PLC (BIL). BIL said it sold its block of voting 9.99% stake or 45.53 million shares at a price range of Rs. 305 and Rs. 313 per share.

In total HNB saw 47.223 million of its voting shares change hands via 747 trades for Rs. 14.42 billion. It closed the day at Rs. 319.50, up by Rs. 17.25 or 5.7%. HNB voting share’s 52-week highest share price was Rs. 362 and the lowest was Rs. 153.50. In the 1Q of 2025, the highest price was Rs. 362 and lowest was Rs. 299.

Some analysts estimated BIL to have made a hefty profit from the sale. Speculation was that Ishara paid over Rs. 5 billion for 9.9% stake collected in stages in 2020-2021. The share price of Browns Investments yesterday gained by 20 cents to Rs. 8.20.

The deal on HNB was one of the largest deals on the Colombo Stock Exchange in recent times. Capital Alliance Securities Ltd., acted as the broker for the buyer, Ceylon Steel Corporation, and facilitated 60% of the trade on behalf of the seller, Browns Investments PLC.

The high-value transaction significantly boosted market activity, pushing the day’s total turnover to Rs. 18.7 billion involving 249.85 million shares.

BIL also holds 45.87% of non-voting shares of HNB.

The late Harry Jayawardena-controlled companies Milford Exports, Stassen Exports and Distilleries Company collectively hold a 17.8% stake in HNB.

Other major voting shareholders of HNB include EPF (9.74%), SLIC Life Fund (8.27%), SLIC General Fund (4.25%), NSB (3.2%), and the UK-based Sonetto Holdings (4.91%).

HNB said last week reported continuity in its growth trajectory in Q1 2025, recording a YoY growth of 49% in Group Profit After Tax (PAT) and a 64% growth in Bank PAT with Group and Bank PAT at Rs. 11.1 billion and Rs. 10.2 billion, respectively.

In 2024 HNB’s PAT improved to Rs. 44.8 billion from Rs. 23.6 billion in 2023 while the bank’s PAT doubled to Rs. 41.3 billion.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.