Ceylon Steel enters banking sector with Rs.13.8 bn HNB stake buy

Ceylon Steel Corporation yesterday marked its entry into the banking sector with the acquisition of a 9.99 percent stake in Hatton National Bank (HNB). 

The stake was acquired from Browns Investments PLC in a transaction valued at Rs.13.82 billion. The deal ranks among the most sizeable transactions to take place on the CSE in recent months.

The deal represented 75 percent of the turnover at the Colombo bourse yesterday. 

The transaction saw the transfer of 45,317,177 ordinary voting shares at Rs.305.00 each via a crossing on the Colombo Stock Exchange (CSE). Ceylon Steel is headed by Nandana Lokuwithana, who has diversified the group’s industrial portfolio in recent years.

The acquisition of shares indicates the steel maker’s growing interest in expanding its footprint into local financial services sector. 

Capital Alliance Securities (Pvt) Ltd acted as the broker for the buyer and also handled 60 percent of the sale on behalf of Browns Investments.