FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » More than CTCE /CDIC - NDB will Gain ...

More than CTCE /CDIC - NDB will Gain ...

Go down  Message [Page 1 of 1]

1More than CTCE /CDIC - NDB will Gain ... Empty More than CTCE /CDIC - NDB will Gain ... Wed Sep 26, 2012 4:40 am

sanju351

sanju351
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
HK insurer to buy Aviva shares

H.D.H Senewiratne

All stakes belonging to the British insurer Aviva in NDB – Aviva Insurance Plc will sell to a Hong Kong based insurance giant, theAmerican International Assurance (AIA) and exit the market, market sources said.

According to market sources, they have reached the final stages of negotiations for the purchase of 51% of the stake held by Aviva and bids have been approved. Therefore, the company had signed a Memorandum of Understanding (MoU) to go ahead with the transaction.

When the Daily News Business contacted Aviva Insurance, they declined to comment on it.

The NDB Bank through its subsidiary, the Capital Development and Investment Company (CDIC), controls a stake of 41.6 percent in Aviva NDB Finance Lanka (ANFL), while Aviva Asia Holdings owns the majority stake of 58.4 percent.

ANFL in turn, has a stake of 87.3 percent of Aviva NDB Insurance, while the NDB Bank independently has another stake of 5 percent. The company’s market value had been around Rs. 8.4 billion which would give Aviva’s a 51 percent stake, a valuation of Rs. 4.2 billion.

When bids had been called in July, seven parties had collected offer documents from Morgan Stanley in Hong Kong who was the investment bankers appointed to handle the deal, insurance sources said. Aviva NDB Insurance which is believed to be the second largest life insurer in Sri Lanka, generated Rs 12.8 million in revenue last year, earning a post-tax profit of Rs 691.6 million. With this development value of a share, which is likely to go up to a Rs 300 level at present, it is selling at Rs 240. AIA is a specialised insurance company mainly operating in Asian markets. With these developments, the share market would increase further, Lanka Securities (Pvt) Limited Research Analyst said. At the end, NDB directly and indirectly has about 41 percent of Aviva NDB Insurance, while Aviva Asia Holdings has about 51 percent. Now the question arises in the market circles whether the NDB will continue to hold their stakes or whether they would sell off their stakes as well to the buyer of the Aviva share.

It was also reported earlier, that the AIA Group, Prudential Plc and Manulife Financial Corp, were bidders for Aviva’s stake in the Sri

Lankan joint venture. However, some news sources said that a few local parties such as top business man Harry Jayewardene and the Janashakthi Group were also interested in it. But This is as part of Aviva, Britain’s second largest insurer’s announcement earlier to sell underperforming businesses globally, partly to raise money to protect against its euro zone exposure which is bigger than that of its rivals. Reuters news wire reported earlier.

http://www.dailynews.lk/2012/09/15/bus01.asp

NDB Bank will exit Aviva NDB Insurance by selling its shares to American International Assurance (AIA) following the planned exit of its partner British insurer Aviva who has already finalized its deal with AIA.

This deal goes through the price the NDB Bank would be getting for its stake is likely to be a staggering sum far above the current market value which is around US$ 15 million.

When Daily News contacted Aviva NDB General Manager (Marketing) Amal Perera reluctant to comment on this deal.

Aviva who has a majority stake of 51 per ecent in the local insurance company is believed to have already entered into an MoU for the sale of its stake to AIA. It is not clear whether the NDB Bank has entered into an agreement for the sale of its stake to AIA.

Our sources said that a team of officials from the Hong Kong based AIA was in Colombo last week negotiating with the NDB Bank for the purchase of nearly 41.14 percent stake in Aviva NDB Insurance held by the bank.

However well informed sources said that the general policy of AIA has been to somehow acquire the entire shareholding wherever they acquired insurance business with the exception of their operations in India where there is a restriction on foreign companies controlling insurance business.

The market analysts said that according to the owning structure of Aviva NDB where some of the stake holders which are NDB subsidiaries are not listed, question of a mandatory offer may not arise. The NDB Bank through its subsidiary Capital Development and Investment Company (CDIC) controls a stake of 41.6 percent in Aviva NDN Finance Lanka (ANFL) while Aviva Asia Holdings owns majority stake of 58.4 percent.

ANFL in turn has a stake of 87.3 percent of Aviva NDB Insurance while NDB Bank independently has another stake of 5 percent in Aviva NDB Insurance. However if AIA acquires stakes owned by both Aviva and NDB Bank it will end up owning more than 90% of the insurance company.

Depending on the company policy AIA may offer to buy the remaining float as well. Since inception in 1987, Eagle Insurance has been a major player in Sri Lanka’s insurance market. The company began operations as a subsidiary of Ceylon Tobacco Company (CTC) with technical collaboration from Eagle Star, UK.

When Ceylon Tobbaco Company (CTC) divested its financial services business in 1999 Eagle become a member of the global insurer, ZurichFinancial Services Group while National Development Bank (NDB) became the Company’s major local shareholder.

Zurich withdrew its operations from Sri Lanka in 2003 leaving NDB the majority control of Eagle with Bank of Ceylon being a key shareholder.

In 2006.Eagle became an Aviva Company. Today, Aviva and NDB, the major shareholders of AVIVA NDB Insurance have 51 percent indirect and 41.2 percent effective shareholding respectively. Reserch Analyst of Lanka Securities (Pvt) Limited said.
http://www.dailynews.lk/2012/09/25/bus01.asp

Jeremy

Jeremy
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Considering the illiquidity of shares and the direct ownership, CDIC is likely to gain more than NDB. There are large number of NDB shareholders who bought their shares below 125 and very likely that they will divest in the event of significant upward movement.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum