Graphit Kropfmuhl GmbH, a German company owning over 90 percent of Bogala Graphite Lanka PLC last week divested 10.33 percent of the company comprising nearly 4.9 million shares to another foreign party, Alterna GK LLC at Rs. 32 per share in a deal worth Rs. 156.4 million.
Analysts noted that the buyer is a US company possibly connected to the US company.
"Given that the German controlling shareholder owned a little more that 90% of Bogala, they will have to address the issue of free float of shares now being required by the SEC," he said.
"There has been no announcement on whether they will choose the delisting route as James Finlay and Carson’s controlled Equity One are doing or adopt some other method."
Recently there was an unusual surge in the generally illiquid Bogala share price and a fairly large volume of shares were traded on the CSE. But that spurt of activity died down fairly quickly.
www.island.lk
No comments:
Post a Comment