Piramel Glass deal energises CSE

By Hiran H.Senewiratne 

Piramal Glass Ceylon PLC ‘s largest shareholder, Piramal Glass Pvt Ltd, entered into a share purchase agreement to sell its entire stake of 56.45 percent  in the company to Pristine Glass Pvt Ltd for Indian Rs. 5.166 billion.

In a CSE filing the company noted that the Board of Directors of Piramal Glass Ceylon has entered into a sale and purchase agreement with, inter alia,  Piramal Glass Pvt Ltd (seller) and Pristine Glass Pvt Ltd ( purchaser), a company duly incorporated under the laws of India, for the sale and purchase of 536,331,880 shares (56.45 percent) being the entire equity held by the seller in the company.

The consideration for the transaction is to be calculated based on the enterprise value of the company of Indian Rs. 5.166 billion, the indebtedness of the company, the net debt of the company and a working capital adjustment to be computed, as agreed, as of the date of transfer of the glass manufacturing business of the seller in India.

Amid those developments, CSE activities were of a negative kind most of the time yesterday but in the latter part of the day they turned positive following the Piramal Glass deal, which accounted for more than 33 percent of the turnover yesterday, stock market analysts said. 

Melstacorp PLC share prices also moved up, thus enabling the market to perform in a positive manner. Both indices moved upwards. All Share Price Index went up by 14.84 points and S and P SL20 went up by 12.04 points. The turnover stood at Rs.  2.93 billion with a crossing. The crossing was reported in JKH, which crossed 300,000 shares to the tune of Rs. 45.6 million; its shares trading at Rs. 152.

In the retail market, top five contributors to the turnover were;  Piramal Glass Rs. 1.07 billion (108.5 million shares traded), Browns Investments Rs. 399 million (118 million shares traded), Melstacorp Rs. 212.8 million (212.8 million shares traded), JKH Rs. 228.4 million (844,000 shares traded) and Hemas Holdings Rs. 80.2 million (846,000 shares traded). During the day  305.9 million share volumes changed hands in 25463 transactions.

During the day investment holdings companies and diversified business conglomerates contributed and were active on the market floor yesterday. Piramal Glass share prices appreciated by 10 percent or 90 cents, following the sale and share purchase agreement. Its shares started trading at Rs. 8.70 and at the end of the day they moved up by Rs. 9.60. Melstacorp share prices moved up by 14 percent or Rs. 6. Its shares started trading at Rs. 42.50 and at the end of the day it moved up to Rs. 48.50. It is said , Carson Cumberbatch  announced an interim dividend of Rs. 0.75 per share.    

Sri Lanka rupee quoted weaker at 186.05/40 to the US dollar on Friday in the spot market while yields remained unchanged in dull market trade ahead of the bond auction, dealers said. The rupee closed at 185.80/186.00 to the US dollar on Thursday.