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™ » FINANCIAL CHRONICLE™ » Why CITK has invested their IPO and PP funds in CLND?

Why CITK has invested their IPO and PP funds in CLND?

Go down  Message [Page 1 of 1]

seek


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
CITK has invested their IPO and PP funds in CLND by purchasing 20.22% of CLND shares.

They have justified that decision various ways.

But why they select CLND to achieve their objectives?

They could have invested that money in shares of a Blue Chip company like SAMP, COMB, JKH etc or they could have bought some stake of already functioning hotel chains like STAF. Such a decision seems to be less risky and provides higher gain than CLND.

Jiggysaurus

Jiggysaurus
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@seek wrote:CITK has invested their IPO and PP funds in CLND by purchasing 20.22% of CLND shares.

They have justified that decision various ways.

But why they select CLND to achieve their objectives?

They could have invested that money in shares of a Blue Chip company like SAMP, COMB, JKH etc or they could have bought some stake of already functioning hotel chains like STAF. Such a decision seems to be less risky and provides higher gain than CLND.

When jokers like Rishan and Disc Jockey's run companies they will use minority shareholder money for their own ends. They will justify their decision in various ways.

CITK selected CLND because both are owned by the same person and he needed to move money from one pocket to the other.

In future CITK minority shareholder are supposed to get platinum mine type returns from this investment in CLND.

WildBear


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
The whole REEF group reaching bottom these days, Do not know what is waiting to happen. Basketball

UKboy

UKboy
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
I have been told that D Jay bought CLND shares at a low price and sold it to CITk for a higher price. So all the money from CITK IPO used to buy these CLND shares from D Jay.
However D Jay has never reinvested that money in a listed company.
He has nothing to lose.
After evaluating all the scenarios, I bought some REEF warrants. Nothing much to lose from a Rs 2.4 share..!

WildBear


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@UKboy wrote:I have been told that D Jay bought CLND shares at a low price and sold it to CITk for a higher price. So all the money from CITK IPO used to buy these CLND shares from D Jay.
However D Jay has never reinvested that money in a listed company.
He has nothing to lose.
After evaluating all the scenarios, I bought some REEF warrants. Nothing much to lose from a Rs 2.4 share..!

Good choice from the REEF group, though it's a risk play this can become a multi bagger when the CITW become operational from mid this year, and CITK in late 2014(At least the villas if not the hotel)

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
REEF.W19 seems a bit less risky with expiry in 2015. I am also averaging a bit these days.

CSF.W can bring some drama in june. ( good or bad)





@WildBear wrote:
@UKboy wrote:I have been told that D Jay bought CLND shares at a low price and sold it to CITk for a higher price. So all the money from CITK IPO used to buy these CLND shares from D Jay.
However D Jay has never reinvested that money in a listed company.
He has nothing to lose.
After evaluating all the scenarios, I bought some REEF warrants. Nothing much to lose from a Rs 2.4 share..!

Good choice from the REEF group, though it's a risk play this can become a multi bagger when the CITW become operational from mid this year, and CITK in late 2014(At least the villas if not the hotel)

seek


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@slstock wrote:REEF.W19 seems a bit less risky with expiry in 2015. I am also averaging a bit these days.

CSF.W can bring some drama in june. ( good or bad)





@WildBear wrote:
@UKboy wrote:I have been told that D Jay bought CLND shares at a low price and sold it to CITk for a higher price. So all the money from CITK IPO used to buy these CLND shares from D Jay.
However D Jay has never reinvested that money in a listed company.
He has nothing to lose.
After evaluating all the scenarios, I bought some REEF warrants. Nothing much to lose from a Rs 2.4 share..!

Good choice from the REEF group, though it's a risk play this can become a multi bagger when the CITW become operational from mid this year, and CITK in late 2014(At least the villas if not the hotel)

Good to know that two co-admins are also in same boat.

seek


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
If we can trust the MDs word as mentioned below, addition of Citrus Pasikuda to the hotel chain during late 2014 will give additional boost the REEF future value.

http://forum.srilankaequity.com/t27139-progress-of-the-citrus-leisure-reef

Jiggysaurus

Jiggysaurus
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@seek wrote:If we can trust the MDs word as mentioned below, addition of Citrus Pasikuda to the hotel chain during late 2014 will give additional boost the REEF future value.

http://forum.srilankaequity.com/t27139-progress-of-the-citrus-leisure-reef

They can even add a Citrus Lemon Juice but all of the new hotel construction will have be funded by debt or another rights issue. They don't have much cash on the balance sheet because the disc jockey basically stole the CITK minority shareholders IPO money to cash out his CLND investment.

According to one of the posts on the forum these jokers couldn't even calculate an EPS properly so do you think they can manage a debt load efficiently?
http://forum.srilankaequity.com/t4342-reef-and-vfin-accountants-who-can-t-calculate

seek


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
no i don't.

Chinwi

Chinwi
Associate Director - Equity Analytics
Associate Director - Equity Analytics
As per the prospectus of CITK, they used pre IPO money to buy Colombo land.

Investments by Kalpitiya Beach Resort Ltd

The LKR 403,500,000/- raised on the Private Placement of 40,350,000 Shares and LKR 700,000,000/- raised on issue of shares to parent for cash has been utilized to fund the following transactions.

Equity Investments in Colombo Land & Development Co. PLC (CLND)

CLND.N000
20th May 2011 19,987,400 shares @ 20.21 Rs. 403,945,354
CLND.N000
2nd June 2011 20,351,200 shares @ 44.00 Rs. 895,557,501

Total shares :40,338,600 Total Investment 1,299,502,855
Average Cost = 32.21 per share

Kalpitiya holding % of CLND = 20.18%

(CITK prospectus- Page 13)

As per the latest CLND FR, CITK is the second largest shareholder with 40,413,200 shares.


That means, Rs. 283 million collected in IPO was not utilized to buy CLND.
(IPO = 16.2 million shares @ 17.50 in November 2011)


CSE.SAS

CSE.SAS
Global Moderator
@Chinwi wrote:As per the prospectus of CITK, they used pre IPO money to buy Colombo land.

Investments by Kalpitiya Beach Resort Ltd

The LKR 403,500,000/- raised on the Private Placement of 40,350,000 Shares and LKR 700,000,000/- raised on issue of shares to parent for cash has been utilized to fund the following transactions.

Equity Investments in Colombo Land & Development Co. PLC (CLND)

CLND.N000
20th May 2011 19,987,400 shares @ 20.21 Rs. 403,945,354
CLND.N000
2nd June 2011 20,351,200 shares @ 44.00 Rs. 895,557,501

Total shares :40,338,600 Total Investment 1,299,502,855
Average Cost = 32.21 per share

Kalpitiya holding % of CLND = 20.18%

(CITK prospectus- Page 13)

As per the latest CLND FR, CITK is the second largest shareholder with 40,413,200 shares.


That means, Rs. 283 million collected in IPO was not utilized to buy CLND.
(IPO = 16.2 million shares @ 17.50 in November 2011)



Your correct Chinwi. I m also about to comment this matter.

Thanks.

Sponsored content


Back to top  Message [Page 1 of 1]

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