Why GREG drastically fell, was it to facilitate Nimal Perera, or Did Nimal Perera sell his GREG shares?

Nimal Perera sipping some Wine
at a High Exclusive Corporate Event

High Exclusive sources close to Colombo Stock Exchange revealed CSE Leaks that High net worth investor Nimal Perera had sold his GREG or famous Environmental Resources Investment (ERI) PLC shares before the week ended 23 January 2011 as the share shot up high again to above Rs.100 and along with slight appreciations in the warrants.

However, as at 30 September 2010, according to Quarterly report of ERI PLC Nimal Perera had 2.34 million GREG shares which amounted to 0.75% of the company.

Some sources say that he has sold this stake to put money for Vallibel One IPO where he is also on Director board; However it could be now derived according to our analysis may be that Nimal Perera had applied for a few more shares of Vallibel One to profit from CSE when it is listed and since he would have applied by a Bank Guarantee he would have sold his GREG shares to partly settle the money for Bank Guarantee’s Bank Charges. 

No Perera’s for The Finance PLC share issue-Official?

Although, lots of Institutional and a few high net worth investors had applied for recently concluded The Finance Co. (TFC) PLC secondary IPO, A top official from TFC revealed CSE Leaks that none of the Big Time players of Sri Lanka’s stock market had applied to the share issue adding that its only genuine people who have applied to shares.

“No Pereras, its only genuine people who have applied” source from TFC told CSE Leaks.

This in turn resembles according to some corporate community in the country that ‘Perera Duo’ who is bullish in Colombo Stock Exchange apart from their Casino business in the country are not ‘So Genuine’, which is questionable to CSE Leaks.

However on the other hand when The Finance Co. PLC official says that ‘Pereras are not Genuine’ it is arguably questionable whether The Finance Co. PLC’s Founder Chairman, Dickman’s Road Financier Lalith Kotelawala who master minded Rs.26 billion South Asia’s largest ever Financial Scam in Golden Key with Khavan Perera are genuine people in Sri Lanka.

Sri Lanka Market Follower Reveals Watch Dog’s ‘Goni Billa’ Price Band Theory?

By CSE Leaks Professor

The so called unexplained ‘Goni Billa’ Formulae or the 10% Price Band Theory implemented by the Buckle Tight Watch Dogs of Sri Lanka’s Capital Market was revealed to CSE Leaks by a leading market follower in the country.

“According to our studies if a company has more than 30% of Public Float, that share will never get caught to ‘Goni Billa’ Price Band” said the well versed market analyst to CSE Leaks.

“That is why REEF.N was never caught with Price Band. I guarantee similarly that if Touchwood (TOUCH) share reach Rs.500 within a day it will never get caught to ‘Goni Billa’ because there is no major shareholder for Touchwood. It is 100% guaranteed Touchwood will not get caught to 10% Price Band” he concluded.

Ceylinco to sell the Model ‘Ceylinco City’ in Colombo

The Finance PLC to sell two iconic properties of the company at R.A. De Mel Mawatha

Sri Lanka’s oldest Golden financial power house, Ceylinco owned The Finance Company (TFC) PLC which had been in the forefront of creating confidence in country’s finance industry continuously for four generations from Great Grand Fathers’ to Grand Sons has recently call for sealed offers to sell two iconic properties which are the benchmarks of the company.

In a recent advertisement in weekend news papers island nation’s oldest finance company The Finance Company (TFC) PLC had invited for offers to outright purchase of two commercial properties, including its head office at No. 55, R.A. De Mel Mawatha, Colombo 04 and No.9A, De Fonseka Place, Colombo 04 amidst a recent secondary offer by the company to raise funds through a public share issue which is offering 40 million ordinary voting shares at Rs.40 per share.

The four storey commercial building property at No.55, R.A. De Mel Mawatha is built on a 72.65 perches land covering 17,800 square feet with ample parking facilities added with access to two road fronts including Gower Street. The other two storey commercial building covering 2500 square feet is built on 13.75 perches land which is just 25 meters from R.A. De Mel Mawatha and 50 meters from Galle Road, in Colombo.

Accordingly any interested party could send their offers titled ‘Offers for the purchase of Commercial Property’ indicating the either property name out of two on the top left corner of the envelope to reach the company’s Assistant General Manager-Administration before the noon of 28 January 2011.

The advertisement further said that prospective buyer should deposit a refundable fee of Rs.250,000 in cash with  TFC, prior to obtaining the title documents of each property while once the buyer is accepted; the buyer should pay 25% of the offer within two working days and the balance with next 14 days whilst the refundable deposit will not be refunded at an instance where buyer delays the full payment of the property.

R.A. De Mel Mawatha which was formerly known as Duplication Road was the central hub Sri Lanka’s former most diversified conglomerate Ceylinco Consolidated, where many head offices of Ceylinco subsidiaries were located including Chairman Lalith Kotelawala’s house and Ceylinco Consolidated head office which was also the consular office of Honorary Consulate for Singapore.

Many Sri Lankans arguably called R.A. De Mel Mawatha as ‘Future Ceylinco City’ as many subsidiaries such as Ceylinco Consolidated, Ceylinco Shriram, Ceylinco CISCO (Now CERTIS Singapore), Ceylinco Fast Cash, Golden Key Credit Card Company, The Finance Co. PLC, Ceylinco Building Society, Lalith Kotelawala’s House at No.28, Elibank Road, American National College (ANC) are all housed in the close proximities of the Road whilst many ‘Big Properties’ at R.A. De Mel Mawatha was once owned by Ceylinco Group.

However, as at today only Punarjeeva Karunanayake advised by Jagath Alwis is been able to carry out Ceylinco’s Multi Million Education business with ANC and Wycherley International School  while securing some of the Premier R.A. De Mel Mawatha properties owned by Ceylinco.

While its main properties are up for sale The Finance Co. PLC had started issuing 10% of the value of its deposits by way of non-voting shares to company’s depositors due to the collapse that resulted after Ceylinco owned Golden Key shutting down its operations without paying back its Rs.26 billion worth depositors.   

GREG So Called Big News: Environmental Resources to announce platinum subsidiary sale?

The all time popular stock since 2009 among Sri Lanka’s listed companies Environmental Resources Investment (ERI) PLC or much popular GREG had recently sold its major stake in a platinum company through its offshore investment company, Environmental Resources Ltd. in British Virgin Islands according to a top stock market analyst in the country. The company will announce the sale of its platinum mining firm’s stake according to a Director type of a leading stock brokering house .

Director Research type said to CSE Leaks that Colombo listed Environmental Resources Investment (ERI) PLC had recently sold a portion of its foreign owned stake at Eastern Platinum Ltd amounting to 22 million shares through Toronto Stock Exchange (where Eastern Platinum Ltd is listed) and that money which ERI owned Environmental Resources Ltd in British Virgin Island would be utilized for a new investment.

“I don’t know why Environmental Resources is delaying their announcement” said Director Research type who is also a top Analyst.

However, Environmental Resources Ltd. registered in British Virgin Islands had 24 million shares of Eastern Platinum valued at US $ 35.5 million (nearly Rs.4 billion) according Environmental Resources Investment (ERI) PLC Annual Report for the Financial Year ended in 2010.

When contacted by The CSE Leaks, the Environmental Resources Investment (ERI) PLC’s Manager Corporate Affairs Harshanee Deshapriya said that “If there is such a sale we will inform it to market in due time”. However, none of the Directors of ERI PLC were not available for comments, at the time of going to press.

Meanwhile, as per reports nearly 32 million shares of Eastern Platinum had changed hands in Toronto Stock Exchange on January 18, the date of which Environmental Resources is said to have done the transaction according to market sources and Director Research Type.

In July 2007, UK Based Hedge Fund Manager, Lionhart Advisors Group headed Lionhart Investments Ltd. acquired a controlling stake in Sri Lanka’s Walker & Greig, a low performing listed shell company at the time by retiling it as Environmental Resources Investment (ERI) PLC, for Rs.76 million and had turn around Sri Lanka’s Colombo Bourse at the peak of its performance since end of war while making the ERI PLC a group that come in to rescue and acquire Sri Lanka’s sick companies such as Dankotuwa Porcelain PLC (DPL), Ceylon Leather Products PLC (CLPL), Colombo Pharmacy PLC,DNH Financial (Pvt) Ltd, Enterprise Technology (Pvt) Ltd, Olancom (Pvt) Ltd, Roomsnet International (Pvt) Ltd, and South Asia Textile Industries Lanka (Pvt) Ltd.

In December 2009 Environmental Resources Investments PLC (ERI), announced it was acquiring 100% of Environmental Resources Limited (ERL), “A company incorporated in British Virgin Islands and holding assets of equity and debentures focusing in the platinum mining industry in South Africa, including Eastern Platinum Ltd”.

Accordingly, ERI agreed to pay US $ 76 million to acquire all of British Virgin Island based ERL from Osiris International Trustees (OSTI) over a period of time through an installment payment of ten tranches with Sri Lanka’s Exchange Control Approval while ERI PLC had so far paid 3 tranches via the ERI’s rights issues and warrant conversions on 6 April, 19 May, 2 November 2010 in the sums of Rs. 432,454/-(US $ 6,426,740.24) and Rs. 714,792,266 (US $ 6,261,868.30) and Rs.606,100,000 (US $ 5,406,779.66) to OSTI to date.

On the other hand, Lionhart Investments continues to remain as the biggest foreign investor in Sri Lanka’s stock market being the major shareholder (over 80%) of Environmental Resources Investment (ERI) PLC.

Meanwhile, according to global hedge funds sources, Lionhart Hedge Fund uses Toronto Stock Exchange as a capital market platform where the Hedge Fund could gain 'high profits in a short period of years and exit at the right time' through divesting its stakes in listed companies in Toronto.

Schaffter’s Dunamis Capital (CSEC) to go for a Private Placement?

From the sources close to some of Sri Lanka’s High time investors, CSE Leaks learns that Insuring family, Schaffters owned Dunamis Capital PLC (CSEC) former Kshatriya Holdings is going for a large scale private placement to raise funds for the group’s future expansions.

At recent times Dunamis had shed its many shell companies while the company had also gone for a rights issue offering 24.59 million shares at Rs.10 per Right to raise Rs.245.99 million. Meanwhile Janashakthi Insurance in a filling to Stock Exchange on January 20, 2011 said that the it had increased the ownership of Dunamis Capital to 21.32%. 

EPF buys shares of Vallibel One to the tune of Rs.200 million?

From the news coming out of latest private placement of Vallibel One which offered 160 million shares at Rs.25 on January 17, sources from Colombo Stock Exchange says that island nation’s largest pension fund Employees Provident Fund (EPF) had recently applied for shares of Vallibel One for the tune of approximately Rs.200 million.

Island nation’s economic twist booster and financial planner who is preparing the ‘Miracle of Asia- Sri Lanka’ to face firmly for ‘Future Shocks’, Central Banker Ajith Nivard Cabraal leaded board manages Sri Lanka’s workers savings fund, EPF which has moneys exceeding Rs.855 billion according to reports. EPF had recently increased its stakes in country's private banks and hotels such as HNB, Galadari and Insurance companies.

Meanwhile sources close to Vallibel One issue told CSE Leaks that the private placement had already been oversubscribed and that it will come with the IPO on March 2011.

Vallibel One Limited is a diversified holding company incorporated on 09th June 2010. Prior to the proposed private placement and initial public offering, 100% of the shares in issue are held by the business tycoon Dhammika Perera and companies controlled by him.

Through its subsidiary companies Vallibel One has made strategic investments in financial services, manufacturing and leisure industry.

Vallibel One has 51% stake of LB Finance (LFIN) PLC and strategic investment of 15% in Sampath Bank PLC (SAMP) with another 51% stake of Royal Ceramic PLC (RCL).

Company is raising funds to finance an equity investment of Rs.3 billion in a new hotel project developed under its full owned subsidiary Greener Water Limited. The hotel will target the high end of the tourist segment and will be positioned as a five star hotel. At commencement, gross Average Room Rate will be US $ 180 and will increase up to US $ 220 by the 5th year of operation.

Greener Water Ltd has already invested Rs.266.73 million in a 14 acre land located in Kochichikade, Negombo, Sri Lanka. The company intends to build a 382 room, luxurious five star hotel designed by WATG of Singapore, one of the world’s leading design consultants for the hospitality, leisure and entertainment industry. The construction of the hotel is estimated to take two years and commercial operations are planned to commence by end of 2013.

The total estimated cost of the hotel project is Rs.5 billion and the hotel will be developed as a BOI approved investment which will qualify for 8 years tax holiday, and a concessionary tax rate of 15% thereafter.

Amidst billions of losses The Finance PLC to be acquired by NSB, Bank Of Ceylon and LOLC?

High Exclusive sources close to Sri Lanka’s oldest former Golden Financial Power House, which is now fallen; The Finance Company PLC says that with its new Rs.40 per share 40 million Ordinary Voting Shares Secondary IPO in cards, that the Sri Lanka’s state owned banking Giants National Savings Bank (NSB), Bankers to the Nation; Bank of Ceylon (BOC) along with Rohini Nanayakkara headed Japanese Financial House Lanka Orix Leasing (LOLC) is bidding to buy major stakes of former Dickman’s Road Financier Lalith Kotelawala owned The Finance Company PLC (TFC).

“The deal will be concluded somewhere in September” our source from The Finance Company PLC added highlighting that The Finance Company expect a better future after the change of the ownership.

“Chairman Lalith Kotelawala will also sell his shares” source told CSE Leaks. However as per shareholders details of The Finance Company PLC, Lalith Kotelawala has 526,427 Ordinary Voting Quoted Shares of the company while another 46,232 Voting Shares of the company owned by Lalith Kotelawala are categorized under Unquoted shares.

As per 30 September 2010 The Finance Co. PLC’s (TFC) major stakes were owned by Ceylinco Investments Co. Ltd (37.13%), Jivaka Lalith Bhupendra Kotelawala (2.93%), Thuraton Investments Ltd. (2.37%), Pershing LLC S/A Auerbach & Grayson & Co. (2.2%), S.N.C.W.M.B. Kandegedera (1.84%) and Marian Martinus Christopher Jeyaraj Fernandopulle (Deceased Former MP of Sri Lankan Parliament) (1.7%).

Meanwhile, the financials of The Finance Co. PLC forecast that company’s income has drastically fallen from Rs.6.69 billion in 2009 to Rs.3.8 billion in 2010 whilst the company had consecutively reported losses amounting to Rs.2.56 billion in 2009 and further loss at Rs.4.28 billion in 2010 after the last profit at Rs.662 million in 2008. It also outlines that shareholders funds stand at negative Rs.2.91 billion while the new Secondary IPO is projected to rectify the negative worth of the company to positive Rs.3.6 billion with issued Secondary IPO public money.

The Finance Co. PLC’s Balance Sheet for the 30 September 2010 says that it has a ‘Mismatch’ between company’s assets and liabilities amounting to Rs.4.08 billion where as the public deposits from 2009 to 2010 has decreased by Rs.1.7 billion from Rs.25.74 billion (2009) to Rs.23.97 billion.

Accordingly, company’s assets are valued at Rs.24.9 billion which is lower than its total liabilities at Rs.28.98 billion.

Panasian Power eyed by a Big Time Indian Investor for Rs.7 a Share?

One of sites of the Power Projects of Panasian Power

Despite upcoming ‘Power Shock’ to Sri Lanka’s electricity consumers amidst high electricity tariffs on duly arriving electricity bills and continuous torrential rains that spilled water rich irrigation system in the country,  resulting in 100% high capacity hydro power generation, market sources say that  one of the recently listed power companies, Panasian Power (PAP) is eyed by a bullish Indian Investor.

“They are trying to negotiate the deal for Rs.7 per share” said our exclusive market source to CSE Leaks adding that the deal will happen soon. Meanwhile Panasian Power (PAP) closed high at Rs.4.20 on 12 January 2011 as at the end of trading day.

High Net Worth Investor Nimal Perera applies to whole IPO of HVA Foods?

Nimal Perera

It is revealed by stock industry analysts and investment knowledge hunters that recently launched Rs.319 million IPO of Heladiv Tea; which is presently owned by Rohan Fernando and Varuni Amunugama Fernando leaded board of Directors had been fully applied by one of Sri Lanka’s leading high net worth investing individual Nimal Perera.

Market sources well versed with foreign fund investments in Sri Lanka told to CSE Leaks that Nimal Perera is among a top investor who has applied to HVA Foods whole IPO. However , although there could be such high time investors they will only receive a part of the portion they applied after relevant allocation as usual.

Meanwhile, this comes into light while the HVA Foods announced Colombo Stock Exchange; that its IPO was oversubscribed on Wednesday 12 January, 2011.

Nimal Perera was an originally a high time bullish post war and prevailing war time investor, Dhammika Perera's friend and investment advisor who manages the Dhammika Perera's investments. He is also the Managing Director of Royal Ceramics, and Finance Director for few other firms owned by Dhammika Perera.

Meanwhile in another development, sources close to Colombo Stock Exchange says that former Connaissance De Ceylan (CONN) which is Amaya Leisure PLC owned by Dhammika Perera is in talks for a possible merger with another entity soon. However CONN share closed high at Rs.122 on January 12.

Shangri La's Seven Star hotel Insurance Deal signed up by Ceylinco Insurance?

Shangri-La development site in the heart of Colombo,Sri Lanka

According to top end exclusive sources from Sri Lanka’s leading Insurance giant, Ceylinco Insurance PLC; it had signed up for insurance deal with the upcoming US $ 500 million investment on a Sri Lanka's first ever Seven Star hotel, that is going to be owned by world famous hotelier Hong Kong-based Shangri-La group.

This was confirmed to CSE Leaks; by an exclusive high profile Director who holds Director Posts in a number of Ceylinco companies, “Yes Partly” said (answering to CSE Leaks' question on whether Ceylinco Insurance has got the Shangri La Hotel Insurance deal) the top Director type who is also one of the Deputy Chairmen of a sub group of Ceylinco; at a recently concluded high profile social of a new beverage company IPO launch.

In the high time sources reveal that, somewhere back in last week of October, Ceylinco Insurance PLC has send one of its officials to Singapore to sign the Shangri-La Insurance deal following the three day visit of Shangri-La head’s visit to the Sri Lanka.

Accordingly, CSE Leaks learns from Sri Lankan corporate sources that Ceylinco Insurance is sitting on a wealth management portfolio where island nation’s top companies insured under its policies such as HSBC-Sri Lanka, along with several other Banks and afforesting companies such as Touchwood PLC.

On the contrary another source from insurance industry in Sri Lanka told CSE Leaks that if Ceylinco has got insured the Shangri La hotel property that it will in turn boost the revenue of Ajita De Zoysa owned ADZ Insurance Brokers of Sri Lanka as many of Ceylinco’s Life and General Business that has to be Re-Insured has been Re-Insured via ADZ Insurance Brokers which has a partnership with one of the world’s leading risk managing and reinsuring  service provider Marsh.

Measnwhile, sources close to ADZ Insurance Brokers says that company is expecting to reach revenue amounting almost Rs.1 billion during this year.

During the last quarter of 2010 Hong Kong Based Shangri La Asia Limited announced the purchase of six acres of government land facing the Galle Face green promenade, a prominent landmark in Colombo, Sri Lanka.  The development will be a multi-use complex with high-end retail facilities, deluxe apartments and a 500-key luxury hotel to open in early 2014.  The purchase marks the entry of the hotel group into Sri Lanka, often referred to as “The Pearl of the Indian Ocean.” says Shangri la’s corporate website.

Shangri-La is also planning to develop a second property, a 300-key city resort on approximately 100 acres of land in Hambantota, on the southern coast of Sri Lanka, to be opened up in 2013.

“Sri Lanka is a country of unsurpassed natural beauty, rich in cultural heritage, and above all it is well recognised for its warm and hospitable population.  The local government is fully committed to rebuilding the economy following the end of three decades of conflict and we believe that Shangri-La will be able to assist in positioning the country as a prime global tourist destination.  Both Shangri-La hotels strategically fit into the group’s ongoing expansion plans to link the Indian subcontinent and our South East Asia developments,” Greg Dogan, President and CEO of Shangri-La International Hotel Management Ltd. reported to have said.

It is reported that Shangri-La Hotel chain had paid a premium price amounting to US $ 125 million for the property at Galle Face (Army headquarters) while the average price of a perch was around Rs.8.5 million.

Hong Kong-based Shangri-La Hotels and Resorts, one of the world’s premier hotel companies, currently owns and/or manages 70 hotels under the Shangri-La and Traders brands, with a rooms inventory of over 30,000.  Over almost four decades the group has established its brand hallmark of ‘hospitality from the heart.’  The group has a substantial development pipeline with projects in Austria, Canada, mainland China, India, Macau, Malaysia, Philippines, Mongolia, Russia, Qatar, Sri Lanka, Turkey and United Kingdom.