Last Updated : 22-08-2014 03:12

 

 
 

NSB pays premium to buy 13% of The Finance

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Country’s savings giant, National Savings Bank (NSB) bought 13 percent of The Finance Company PLC (TFC) last Friday for a sum of Rs.393 million, becoming another state owned institution that has paid an unusually high price on controversial stocks.

A stock exchange report filed by Taprobane Securities said that its client NSB bought 7, 863, 362 shares, which amounted to 13.02 percent of TFC at an average price of Rs.49.74 per share. However, the sellers of the shares were not mentioned.

Mirror Business on Saturday reported that the sellers of the shares were the two non-executive directors of TFC, Rayynor Silva, who is a popular media personality attached to ABC Corp and the brother of MP Duminda Silva and Dinal Wijemanne, the CEO of Taprobaine Securities, the brokerage which facilitated the deal.

Among the other sellers were two of the top 20 shareholders of the company namely, N. Perera and A.A.Y. Perera, who were featured 13th and 14th places respectively.

Although NSB may claim that the purchase of TFS shares is strategic in creating synergies between the two entities, the analysts Mirror Business talked to charged that the price paid by NSB was not rational.

On the day NSB bought into the TFC, shares of the finance company opened at Rs.30, and during April, the share was trading between Rs.30-32.50.

The Finance made a net loss of Rs.17.5 million for the three months ended December 31, 2011, steeply down from Rs.440.4 million net loss it made in the same period of the previous year.

The financials however also showed that TFC held negative net assets per shares of Rs.23.57 at the end of December and an accumulated loss of Rs.9.4 billion.


 
 

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Comments 

 
-0+46 # Achari 2012-04-30 11:07
POOR SAVERS MONEY. What is next ???? % ???????
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-64+3 # mawella 2012-04-30 11:20
TFC has its fully own assets, like Branch network, Profits not the only financial rating or gearing. NSB taken a good strategic move
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-2+54 # Manu 2012-04-30 12:17
good strategic move...??? 30RS share buying at 49Rs ...even loss making company... are you out of mind ???
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-1+48 # Fayad 2012-04-30 12:18
May be a good strategic move for the sellers.
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-1+16 # dana rina 2012-04-30 12:31
yeah the way forward, buy buildings. NSB is a real estate broker no?
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-0+24 # Mahasen 2012-04-30 13:29
Have you ever sold a Bulto? What is "Stratregy" in this 'move" ? Stealing NSB pocket & filling seller's pocket?
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-0+18 # DINESH 2012-04-30 13:35
Do u have basic exchange knowelage ??? if yes can you explain the logic behind this
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-0+0 # dana rina 2012-05-01 13:38
Second it. Actually you dont need exchange knowledge for this. If you go to market to buy something and the seller has put the price at 30Rs, would you say i ll pay you 49Rs?
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-1+50 # R.Dias 2012-04-30 11:22
Public savings have been used to save the Launderers....what a brilliant stock market ...very transparent...Hik.....Hik......Hik.....
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-2+44 # GamaraalaSri Lankan 2012-04-30 11:53
Reimbursement of medical expenses....
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-1+30 # Athula 2012-04-30 12:25
Analys the price of TFC shares in past few months. And for how much NSB bought these shares. Poor savers money
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-0+24 # Athula 2012-04-30 12:31
Analyse the price of TFC shares during past few months and for how much NSB bought these shares. Who made millions out of this deal? Poor savers money mishandled
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-1+28 # Game Kolla 2012-04-30 12:40
The stock market is controlled by few business tycoons and ordinary share holders are facing unbearable financial crisis.
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-0+17 # Hassenn 2012-04-30 12:50
Mulpractise,Ser ving the Nation with different spoons
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-0+19 # sam 2012-04-30 13:23
All personnel involved in these transactions playing with public money should be brought before law. If not under present regime, it should be given priority of the next regime that people elect.
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-0+23 # akila 2012-04-30 13:55
The CSE better look in to this deal if they want to be considered a respectable institution. Given that the owner of the brokerage faciliating the deal also sold his shares says something about the level of ethics in this firm!
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-0+29 # Jayan 2012-04-30 14:03
NSB should explain the general public, the reason for investing in such a junk stock, when there are so many other options. If the pubic keep quiet, NSB might suffer the same fate as Golden Key.
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-0+4 # Tokyo 2012-05-01 05:31
Paying over 300M for a company that doesn't exsist any value is the best example of corporate governance of SL institutions . Savers should think tiwse...
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