NDB exits Seylan Bank stake through Rs.2.77bn market transaction

National Development Bank PLC  (NDB) disposed of its entire 26.63  million share stake in Seylan Bank  PLC, at Rs.104 per share, through a  transaction executed on the Colombo  Stock Exchange (CSE), marking its  exit from what it described as a “non strategic investment”. In a corporate disclosure to the  CSE, NDB said the disposal involved  26,631,495 Seylan Bank shares  and was carried out in line with the  bank’s strategy to exit a non-strategic  investment, upon identifying a suitable  opportunity. Based on the disclosed  price, the transaction was valued at  approximately Rs.2.77 billion.

Market sources said the shares were  absorbed by a buying consortium  arranged through Asia Securities, with  investor interest linked to existing  Seylan Bank shareholder Phantom  Investments, controlled by media  entrepreneur Rayynor Silva.  However, neither NDB nor Seylan  Bank officially disclosed the identities  of the buyers as of yesterday evening. The transaction was executed on the  trading floor of the CSE, according to  the filing. NDB shares closed 0.63 percent  lower, at Rs.117.75 yesterday, while  Seylan Bank shares gained 0.24 percent  to close at Rs.106.25.