No sale of CIC stakes
Rusi Captain denies:
Veteran investor and Company Director Rusi Captain, whose company
Paints and General Industries Ltd owns 56% of agriculture- rich Chemical
Industries Colombo PLC (CIC) yesterday denied rife market speculation
that he was to sell his companyís stake in the local outfit of the
multinational blue chip.
Rusi Captain and related parties who collectively own 23% of premier
blue chip diversified corporate conglomerate John Keells Holdings PLC,
told Daily News Business yesterday that he was not selling anything
related to Chemical Industries Colombo PLC and that he was merely a
This follows market speculation that due to the Paints and General
Industries Ltd holding the controlling industries and Captain getting a
recent Board seat on CIC that the company was going to sell 56% stake or
to make a killing on a partial sale of the company.
The backdrop of the market speculation was due to foreign investors
buying over 2 million CIC shares within the last few days which led the
market to speculate that the Captains were divesting their stakes.
Analysts also said the financial performance of the CIC Group was very
positive with wholly owned subsidiary CIC Agribusiness set to make
Profit Before Tax of Rs. 80- Rs. 95 m per month and the CIC Group Post
Tax Profit set to be over Rs. 100 m per month from June 2008.
Further positive features of the companyís performance was the
divestiture of the 36.7 percent of the CIC subsidiary Chemanexís stake
in Commercial Leasing which had a Capital gains of Rs. 97.7 m which has
substantially reduced the financing costs of CIC.
CIC also has captured 47% of the local paints market and the recent
acquisition of CICís parent company Imperial Chemical Industries PLC by
Akzo Nobel of Netherlands which is the largest paint manufacturer also
put the CIC stakes high.
CICís Net Asset Value per share is Rs. 47.32.
It has also made a net profit after tax of Rs. 186.26 million for the
three months ended June 2008.