German-based Graphit Kropfmuhl GmbH, which owned 90.33 percent of the shares in Bogala Graphite Lanka, yesterday divested a 10.33 percent stake to US-based firm Alterna GK LLC.
The 4.88 million shares amounting to the said stake was sold at Rs.32 per share. Mirror Business earlier reported that Bogala Graphite, one of the largest exporters of vein graphite in the world, was considering its options in remaining a listed entity on the Colombo Stock Exchange due to the mandatory public free float requirement..
According to the public free float rules, the public should have 20 percent ownership of a main board entity or a 10 percent ownership in a secondary board entity before December 31, 2016.
Analysts opine that the company’s desire to remain as a main board company may have prompted the share sale.