By Paneetha Ameresekere
Ceylon Finance Today: Blue chip Carson Cumberbatch plc controlled by the Selvanathan brothers Mano and Hari, plans to raise Rs 10.35 billion by selling at least some of its plantation stock in Malaysia.
These comprise a total of a maximum of 1,600 hectares; a drop in the ocean compared to the over 150,000 ha., of plantation stock, mainly oil palm (similar to that of their Malaysian entities), which the Carsons Group, the parent holds, in Indonesia, market sources however told this reporter.
These Malaysian plantation stocks are controlled by some of its subsidiaries listed in the Colombo Stock exchange (CSE) such as Selinsing, Good Hope, Indo-Malay and Shalimar (Malay).
The stakes by the Selvanathan Brothers in these listed entities, either directly or indirectly, are over 90%.
These respective companies, in recent stock exchange filings said that the reason why they want to dispose of their Malaysian stock, primarily oil palm, is due to depressed commodity prices, led by the crash in crude oil prices.
The valuations are based, by that which has been made by at least one valuer, with the companies informing the CSE that they also plan to get a second opinion of these valuations. The valuations were made in Malaysian ringgits (RM). For convenience, those have been converted to rupees, as per the daily Central Bank of Sri Lanka's (CBSL's) notifications of the exchange rates (ERs) of various currencies, including the RM. Conversions were made based on the prevailing rate as at Tuesday, 1 December, 2015.
Additionally, these four listed companies together have a controlling 53.32% stake of a plantation company (also oil palm), Shalimar Developments in Indonesia. In the said stock exchange filing, the companies had further said that they also plan to dispose of that stock as well. However, no valuation, 'initial' or otherwise, have been given of the Indonesian plantation company. The balance equity stake, i.e. 46.68%, is held by another Carsons subsidiary, namely Good Hope Asia, which is registered in Singapore, sources said.
Shalimar Developments is one of several companies which holds Indonesian oil palm stocks, on behalf of the Carsons Group. In the over-arching picture of the Carsons Group's over 150,000 ha.'s of holdings in Indonesian plantations stocks, Shalimar Developments' holdings as a whole are negligible, they said.
A chief reason that has necessitated these companies to make these filings is a CSE ruling that a listed company should have a minimum 15% public float and a minimum 500 public share holding by the year end.
The companies therefore have asked the CSE for a two year grace period, vis-à-vis 'laying down the law' in respect of their new listings requirements, till these proposed transactions are finalized. The final outcome would be that those companies would then seek a delisting from the CSE, the sources said.
The diversified Carsons Group's range of business activities include real estate (the group own some prime property in Colombo Fort among several others), soft liquor (the group virtually has a monopoly in the local beer business), leisure, travel, financial services and last but not the least, in plantations.
However, the Group holds no plantation stock in Sri Lanka. Conversions to rupees have been made on the basis that according to CBSL, the value of the RM as at Tuesday, 1 December, 2015 was Rs 33.743 to one RM. The valuations of the Group's Malaysian properties in question have been given in RM.
www.ceylontoday.lk
Ceylon Finance Today: Blue chip Carson Cumberbatch plc controlled by the Selvanathan brothers Mano and Hari, plans to raise Rs 10.35 billion by selling at least some of its plantation stock in Malaysia.
These comprise a total of a maximum of 1,600 hectares; a drop in the ocean compared to the over 150,000 ha., of plantation stock, mainly oil palm (similar to that of their Malaysian entities), which the Carsons Group, the parent holds, in Indonesia, market sources however told this reporter.
These Malaysian plantation stocks are controlled by some of its subsidiaries listed in the Colombo Stock exchange (CSE) such as Selinsing, Good Hope, Indo-Malay and Shalimar (Malay).
The stakes by the Selvanathan Brothers in these listed entities, either directly or indirectly, are over 90%.
These respective companies, in recent stock exchange filings said that the reason why they want to dispose of their Malaysian stock, primarily oil palm, is due to depressed commodity prices, led by the crash in crude oil prices.
The valuations are based, by that which has been made by at least one valuer, with the companies informing the CSE that they also plan to get a second opinion of these valuations. The valuations were made in Malaysian ringgits (RM). For convenience, those have been converted to rupees, as per the daily Central Bank of Sri Lanka's (CBSL's) notifications of the exchange rates (ERs) of various currencies, including the RM. Conversions were made based on the prevailing rate as at Tuesday, 1 December, 2015.
Additionally, these four listed companies together have a controlling 53.32% stake of a plantation company (also oil palm), Shalimar Developments in Indonesia. In the said stock exchange filing, the companies had further said that they also plan to dispose of that stock as well. However, no valuation, 'initial' or otherwise, have been given of the Indonesian plantation company. The balance equity stake, i.e. 46.68%, is held by another Carsons subsidiary, namely Good Hope Asia, which is registered in Singapore, sources said.
Shalimar Developments is one of several companies which holds Indonesian oil palm stocks, on behalf of the Carsons Group. In the over-arching picture of the Carsons Group's over 150,000 ha.'s of holdings in Indonesian plantations stocks, Shalimar Developments' holdings as a whole are negligible, they said.
A chief reason that has necessitated these companies to make these filings is a CSE ruling that a listed company should have a minimum 15% public float and a minimum 500 public share holding by the year end.
The companies therefore have asked the CSE for a two year grace period, vis-à-vis 'laying down the law' in respect of their new listings requirements, till these proposed transactions are finalized. The final outcome would be that those companies would then seek a delisting from the CSE, the sources said.
The diversified Carsons Group's range of business activities include real estate (the group own some prime property in Colombo Fort among several others), soft liquor (the group virtually has a monopoly in the local beer business), leisure, travel, financial services and last but not the least, in plantations.
However, the Group holds no plantation stock in Sri Lanka. Conversions to rupees have been made on the basis that according to CBSL, the value of the RM as at Tuesday, 1 December, 2015 was Rs 33.743 to one RM. The valuations of the Group's Malaysian properties in question have been given in RM.
www.ceylontoday.lk
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