CT Holdings and Cargills divest 10% stake in Cargills Bank to meet regulatory caps

CT Holdings PLC and its subsidiary Cargills (Ceylon) PLC have collectively divested a stake exceeding 10 percent in Cargills Bank PLC, a strategic move executed to comply with shareholding guidelines mandated by the Central Bank of Sri Lanka. 

The transaction, which took place on February 12, 2026, saw the two entities selling a combined total of over 95 million shares through the Colombo Stock Exchange.

Following the significant block trades earlier in the week, the Cargills Bank share closed the week on a slightly bearish note. On Friday, the share price dipped by Rs. 0.10 to close at Rs. 9.60, reflecting a 1.03 percent decline. This pricing aligns with the upper end of the range seen during the divestment, where shares were transacted between Rs. 8.90 and Rs. 9.70.

CT Holdings PLC disclosed that it disposed of shares amounting to 4.005 percent of the bank’s issued share capital. The trade involved multiple transaction blocks with prices ranging from Rs. 8.90 to Rs. 9.70 per share. 

Simultaneously, Cargills (Ceylon) PLC announced the disposal of a 6.048 percent stake, with transaction prices ranging between Rs. 8.90 and Rs. 9.50. Both entities confirmed in corporate disclosures that the disposals were carried out strictly in line with Central Bank guidelines regarding their specific shareholdings in the bank.

This divestment comes against the backdrop of an improved financial performance by Cargills Bank for the nine months ended September 30, 2025. The bank reported a profit after tax of Rs. 313 million, a significant 97 percent increase compared to the Rs. 158 million reported in the corresponding period of the previous year. 

The growth in profitability was supported by a 10 percent rise in net interest income, which reached Rs. 2.74 billion, and a 10 percent growth in net fee and commission income.

The bank’s balance sheet also signaled robust expansion during the period, with the loan book growing by 31 percent to reach Rs. 60.4 billion as of September 2025. This aggressive lending growth was achieved while managing asset quality, as the bank’s Stage 3 Loans (net of impairment) to Total Loans ratio improved to 7.55 percent from 8.74 percent a year prior.

As of the end of the September quarter, Cargills (Ceylon) PLC was the largest shareholder with a 37.09 percent stake, while CT Holdings held 23.62 percent. The voting rights for these major shareholders are capped at 30 percent, regardless of their actual ownership percentage, in accordance with banking regulations.