SEYLAN BANK PLC (SEYB.N0000)

ROHAN · 1 Government going to take over SEYLAN BANK Wed Jun 01, 2011 12:56 pm

ROHAN

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there are some hot gossip in broker forums,,,Government going to take over SEYLAN BANK ,,,,,any hot news about it... Shocked

Last edited by ROHAN on Wed Jun 01, 2011 12:59 pm; edited 1 time in total

milanka · 2 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 12:58 pm

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@ROHAN wrote:there are some gossip in broker forums,,,Government going to take over SEYLAN BANK ,,,,,any hot news about it...

Previously a news about Chinese coming in...

Hawk Eye · 3 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 1:15 pm

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May be finding reasons to push the share price up !

Gaja · 4 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 1:20 pm

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as at 31.03.2011, i think govt is having 32%

mono · 5 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 1:21 pm

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ah the rumor mill.

Why would the government take over SEYB?

Chinwi · 6 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 1:24 pm

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After the rights issue , if many did not contribute for their rights and the Govt. paid for them it will get it automatically.

duke · 7 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 1:27 pm

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first they put a fake transaction for 50. now this. next they'll say warren buffet is going to buy it.

i think this'll go the same as TFC.

dhamindra · 8 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 5:35 pm

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@ROHAN wrote:there are some hot gossip in broker forums,,,Government going to take over SEYLAN BANK ,,,,,any hot news about it...

Yeah reliable source informed me too that Sri Lanka Insurance Corperation will buy Seylan Bank...

duke · 9 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 5:46 pm

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Definitely. Sure and shot. If the investors are broke and if they can't or won't apply for rights then somebody has to do it. If Seylan cannot find somebody then there is only one person, government.
Government cannot and won't allow an established bank go out of funds. In fact they came forward to protect the bank. So just like TFC government will direct the government institutions EPF, Insurance (and now even Commercial, HNB) to fill the rights. That's what happened to TFC. If I remember correct Seylan bought TFC shares to fill the gap.
Government won't buy Seylan bank. They will fill the unsubscribed rights just like what happened in TFC IPO.

Last edited by duke on Wed Jun 01, 2011 5:49 pm; edited 1 time in total

kam2011 · 10 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 5:48 pm

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According to the March 31 Accounts Gov. through Insurance,BOC and EPF own around 31.59%( Sri Lanka Ins. 15.00,BOC 10.00% and EPF 6.59%)That means already Gov. is the major shareholder.Is n't it?

CSE Today · 11 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 6:22 pm

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@kam2011 wrote:According to the March 31 Accounts Gov. through Insurance,BOC and EPF own around 31.59%( Sri Lanka Ins. 15.00,BOC 10.00% and EPF 6.59%)That means already Gov. is the major shareholder.Is n't it?

Yes but with the 3:2 rights issue ..if not subcribed the GOV will lose the %...

but my Question is how can any institution buy into shares exceeding the holding 10% according to the stipulated rule of CBSL ["more than 10% of a commercial bank could not be acquire by a single party or consotium of parties acting together" ]...is this regulations only for others & can the GOV institutions such as EPF, ETF, SLIC, BOC..etc etc over ride the Banking ACT...?

Fresher · 12 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 7:14 pm

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the rights issue is 1:3 and not 3:2

mono · 13 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 7:16 pm

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what amkes you guys possibly think the government won't subscribe to that rights issue. There is a good chance they will. I am also wondering if these Ceylinco people will sell their rights in the market or not exercise them

TuskerLK · 14 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 7:19 pm

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Possibly a manipulation trick

kam2011 · 15 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 7:34 pm

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@CSE Today wrote:

@kam2011 wrote:According to the March 31 Accounts Gov. through Insurance,BOC and EPF own around 31.59%( Sri Lanka Ins. 15.00,BOC 10.00% and EPF 6.59%)That means already Gov. is the major shareholder.Is n't it?

Yes but with the 3:2 rights issue ..if not subcribed the GOV will lose the %...

but my Question is how can any institution buy into shares exceeding the holding 10% according to the stipulated rule of CBSL ["more than 10% of a commercial bank could not be acquire by a single party or consotium of parties acting together" ]...is this regulations only for others & can the GOV institutions such as EPF, ETF, SLIC, BOC..etc etc over ride the Banking ACT...?

May be you are correct as per CBSL rules. But situation in all banks are same. Please look at the following figures.

SAMPATH
Valibel One 15.00%

PAN ASIA
K.D.D.Perera 29.99%
Royal Ceramics 1.29%

NTB
JKH 20.00%
Mackinnons Keels Fina. 9.90%

DFCC
BOC 14.36%
S.L.Ins.-Life 13.00%
EPF 4.47%
ETF 0.76%
NSB 0.51%
S.L.Ins-Gen 0.47%

COMMERCIAL
DFCC 14.92%
EPF 8.45%
S.L.Ins-Life 5.09%
S.L.Ins-Gen 4.37%

UNION BANK
Vista knowledge Pte Ltd 18.52%

HNB
S.L.Ins 11.93%
EPF 7.56%
NSB 2.34%
ETF 0.45%

NDB
BOC 9.97%
EPF 8.77%
S.L.Ins-Gen 5.72%
S.L.Ins-Life 4.75%
ETF 2.60%
NSB 1.01%

HDFC
NHDA 49.73%

Above is the actual situation as per respective financial reports. These figures reflects the Important role played by the Gov. Funds to keep the stock market active and vbrant. How ever it looks like that without the Gov. Funding Banking sector could not run the show in our Country. .

mono · 16 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 7:42 pm

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I think you can have as much shares as you can but your vote will never amount to more than 10%. This doesn't apply if the bank is something you or your family opened

surf · 17 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 8:28 pm

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Don't u think it is still good to collect seybx at somewhere around 36-37? If manipulator wants to manipulate, can't we take some kind of advantage from that manipulation?

mono · 18 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 8:30 pm

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@surf wrote:Don't u think it is still good to collect seybx at somewhere around 36-37? If manipulator wants to manipulate, can't we take some kind of advantage from that manipulation?

SEYBx at 36-37 is a pretty safe investment. I can't think of too many reasons for this dropping down further.

factFINDER · 19 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 10:10 pm

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@CSE Today wrote:

@kam2011 wrote:According to the March 31 Accounts Gov. through Insurance,BOC and EPF own around 31.59%( Sri Lanka Ins. 15.00,BOC 10.00% and EPF 6.59%)That means already Gov. is the major shareholder.Is n't it?

Yes but with the 3:2 rights issue ..if not subcribed the GOV will lose the %...

but my Question is how can any institution buy into shares exceeding the holding 10% according to the stipulated rule of CBSL ["more than 10% of a commercial bank could not be acquire by a single party or consotium of parties acting together" ]...is this regulations only for others & can the GOV institutions such as EPF, ETF, SLIC, BOC..etc etc over ride the Banking ACT...?

Though the Banking Act restricts acquiring more than 10% of the voting shares of a licenced commercial bank, by a single party or consotium of parties acting together, the Act it self given provision for Monetary Board of CBSL to approve a high percentage. Sometime they prescribe timeframes also to reduce the approved holdings in excess of 10%.

However, the concept "parties acting together/Acting-In-Concert" is very difficult to be established.
Anyone can argue that investment of government institutions and government controlled funds also Acting-In-Concert..... (e.g. in recent appoinment of Directors to COMB & HNB)

Gaja · 20 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 11:37 pm

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@mono wrote:I think you can have as much shares as you can but your vote will never amount to more than 10%. This doesn't apply if the bank is something you or your family opened

I am also not sure, but when the DFCC disposed the Comm Shares they told because of the CBSL requirement, also if time permits have look on the 2010/2011 JKH annual report, in the Chairman message, where he talks about complying with the CBSL requirement ( i think he spoke about NTB )

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SEYLAN BANK PLC (SEYB.N0000)

1 Government going to take over SEYLAN BANK Wed Jun 01, 2011 12:56 pm

ROHAN

2 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 12:58 pm

milanka

3 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 1:15 pm

Hawk Eye

4 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 1:20 pm

Gaja

5 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 1:21 pm

mono

6 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 1:24 pm

Chinwi

7 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 1:27 pm

duke

8 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 5:35 pm

dhamindra

9 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 5:46 pm

duke

10 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 5:48 pm

kam2011

11 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 6:22 pm

CSE Today

12 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 7:14 pm

Fresher

13 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 7:16 pm

mono

14 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 7:19 pm

TuskerLK

15 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 7:34 pm

kam2011

16 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 7:42 pm

mono

17 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 8:28 pm

surf

18 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 8:30 pm

mono

19 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 10:10 pm

factFINDER

20 Re: SEYLAN BANK PLC (SEYB.N0000) Wed Jun 01, 2011 11:37 pm

Gaja

21 Re: SEYLAN BANK PLC (SEYB.N0000)

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