A Tokyo-based healthcare information infrastructure company has bought Sri Lanka’s E-Channelling PLC, a pioneering internet-based doctor channeling business.
A Tokyo Stock exchange listed SMS Company Limited’s fully owned subsidiary Senior Marketing System Asia Private Limited on Wednesday bought 15 percent (18.3 million shares) of E-Channelling at an average share price of Rs. 8.47.
Among the sellers were Capital Trust Holdings (Pvt) Limited which held 10.46 percent stake. Capital Trust divested its 12.77 million shares in the company for Rs.109 million, at Rs. 8.50 per share.
According to E-Channelling Chairman/CEO, Ruwan Silva, the balance 5 percent was secured by the buyer from the market.
Meanwhile, Capital Trust Chairman/Managing Director Tushan Wickremasinghe said he was waiting for the right price to divest his stake in E-Channelling.
“In fact I bought the shares one year ago at an average share price of Rs. 5 from Sri Lanka Insurance Corporation Ltd and I thought Rs. 8.50 was the correct price,”
“At the same time this price was also a win-win deal for both parties because this was a reasonable price for the foreign party too. Unless we give them the right price we cannot expect foreigners to invest in Sri Lankan shares,” he said. On September 18, E-Channelling’s share ended 20 cents higher at Rs. 8.30.
Ruwan Silva owns 28 percent stake in E-Channelling through British American Technologies Private Ltd while another 20 percent is held by J.B Cocoshell Private Ltd.
It appears that this strategic purchase by the Japanese company might even lead to further upping their stake in E-Channelling in the future, provided expected business synergies can be drawn between the Japanese party and E-Channelling.
“They would have realized that this (the deal) was a faster method of making the links to many Sri Lankan hospitals,” Wickremasinghe opined.
SMS Company Limited’s wholly owned subsidiary Senior Marketing System Asia Private Limited is based in Singapore and was established recently in order to supervise the operations of overseas subsidiaries and investments of SMS.
SMS has many subsidiaries in South and South East Asia including India.
During the financial year ended March 31,2013 SMS Co. Ltd, the company recorded a revenue of US $ 103 million with a US $ 12.4 million net profit.
According to Colombo Stock Exchange Chairman Krishan Balendran, the market has so far seen about US $ 200 million worth net foreign inflows, up from the US $ 300 million received for the 2012 full year.