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.