Softlogic entry into Insurance likely to pave way for unimaginable synergies

asitha

asitha

Senior Equity Analytic

Posts : 56
Join date : 2011-03-14

lets see what will happen.....if this announcement publish at the day of first trading ...def.it will go further 10 at least... Very Happy

Lam

Lam

Stock Analytic

Posts : 13
Join date : 2011-06-21

nkalansu wrote:

thambi wrote:nkalansu - how much was softlogic offered for in private placements ??

As per page 49 of the prospectus there is information about private placements. They have raised money on two occations 8-03-2010 and 12-04-2010. Consideration for these were Rs. 72/= per share. Total issued shares in the two Private Placements were 14 million shares. Amount rasied as per prospectus is Rs. 1,008 Mn (Rs. 72 X 14 Miilion). Then They have sub divided the shares 1:10. So effectively Private Placements investors have invested for Rs. 7.20 per share. After the sub division the total number of shares is 640M.

how can it come to 640M, when 14M is sub divided 1:10 ? can you please explain?

nkalansu

nkalansu

Senior Manager - Equity Analytics

Posts : 335
Join date : 2011-06-11

Lam wrote:

nkalansu wrote:

thambi wrote:nkalansu - how much was softlogic offered for in private placements ??

As per page 49 of the prospectus there is information about private placements. They have raised money on two occations 8-03-2010 and 12-04-2010. Consideration for these were Rs. 72/= per share. Total issued shares in the two Private Placements were 14 million shares. Amount rasied as per prospectus is Rs. 1,008 Mn (Rs. 72 X 14 Miilion). Then They have sub divided the shares 1:10. So effectively Private Placements investors have invested for Rs. 7.20 per share. After the sub division the total number of shares is 640M.

how can it come to 640M, when 14M is sub divided 1:10 ? can you please explain?

Actually prior to issue of new 14 M shares, already there were 50 million shares. So altogether 64 Million shares. Total amount get subdivided 1:10. So 640 M shares.

I think you should download the prospectus from www.cse.lk and have a good look at it. There are lot of information.

UKboy

UKboy

Senior Vice President - Equity Analytics

Posts : 1943
Join date : 2011-02-08

+ Good observation skills nkalansu. +

Since our mini retailers fancy buying each and every IPO, for sake of them lets hope this will go up by at least few rupees. Rolling Eyes

Quibit

Quibit

Senior Vice President - Equity Analytics

Posts : 2661
Join date : 2010-05-08

Sri Lanka's Softlogic eyes stake in Asian Alliance Insurance

Sri Lanka’s Softlogic Holdings, a recently listed firm on the Colombo Stock Exchange is looking to diversify into insurance business by acquiring Asian Alliance, the insurance arm of listed investment bank Asia Capital, a reliable source said.

Discussions for the possible acquisition is at an ‘advanced stage’ the source confirmed.

However details of percentage stake to be divested by Asian Alliance Insurance and at what price was not disclosed.

Asian Alliance Insurance, a listed insurance firm with a market cap of 5.1 billion rupees, is ranked the sixth biggest firm in the island by the Insurance Board of Sri Lanka.

Its controlling stake of 51 percent, worth nearly 2.5 billion rupees which market sources speculate will be divested, is owned by Asia Capital.

Market buzz over the possible deal today drove Asia Capital’s share price up by 3 to 4.00 rupees, trading between 114.00 to 115.00 rupees, said brokers.

Other major shareholders of the insurer include Fast Gains International which owns 24.25 percent while Richard Pieris group claims a 15 percent stake.

Asian Alliance Insurance recorded a net profit after tax of 368 million rupees for the financial year ending 31 December 2010, a growth of 154 percent from the previous year. Its total investments amount to 3.8 billion rupees, according to the latest annual report.

The insurer is its 11th year of operation.

The deal would mark Softlogic group’s entry in to insurance business and is expected to strengthen its presence in the financial sector.

Sofltogic became the latest privately owned conglomerate to list on the Colombo bourse last month, offering an 18 percent stake or 139 million shares at 29 rupees each, to raise four billion rupees.

The group, which has business interest in hospitals, electronic and apparel retail, and leisure, listed on the Diri Savi Board will start trading tomorrow.

http://www.lbr.lk/fullstory.php?nid=201107111543026770

nkalansu

nkalansu

Senior Manager - Equity Analytics

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[quote="mohith"]

nkalansu wrote:

mohith wrote:guys,as i mentioned earlier those who didn't subscribe to this valuable ipo,will worry like nothing eventually

Sophisticated investors will build businesses, grow them and become owners. The people who have built SOFTLOGIC are great businessmen. Next step would be to take the business public through an IPO. There you find two types of shareholders. 1. Selling shareholders 2. Buying shareholders.

Present owners who build the company will become selling shareholders since they give away to the public and accumulate great wealth. Bill Gates (Founder of MICROSOFT) and many other billionaires (Larry Elison : Founder of ORACLE, Sam Walton : WALMART, many Sri Lankan businessmen) became rich by taking their companies public.

What are the buying shareholders do? They buy from IPO sell it for 5 to 10 rupee gain and exit. Some may burn fingers. Some who were unable to sell/ missed the opportunity, hold on forever till you get to the IPO price to sell (eg. EXPO, FLCH, UNION BANK...etc etc....)

How sad.

lets see who will sad like nothing dir

To : mohith

Acquisition of AAIC has failed to impact the SOFT first day trading prices. Appears to be the most unsuccessful IPO. It appears all the private placement people have traded today. Poor retailers.

SOFT people must have done a great deal to take controlling stake of AAIC and make the announcement to the market. Main reason is to boost the SOFT first day trading. They have allowed VONE to trade before SOFT and purposely delayed the trading i think.

They have failed. Retailers have failed too. I guess SOFT promoters in this forum have nothing to say now.

May be one or two days time they will make an announcement that they have purchased SLIC to at least take the price to Rs. 29/=.

As per my previous posts this was an overvalued shoddy IPO that ripped off the retailers. How sad.

Actually I have seen posts in this forum that talked about "Shoe shine boys". I am sure now that those boys may be experiencing the unimaginable synergies of SOFT that entered the insurance industry now. Great Stuff!

Last edited by nkalansu on Wed Jul 13, 2011 12:40 am; edited 1 time in total (Reason for editing : additional information)

ssb

ssb

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total shitlogic Sad

seyon

seyon

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Join date : 2011-02-01
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Based on the announcement Softlogic Capital invested in AAIC is about 51% and Softlogic Holding (SHL) is about 27%.

Is Softlogic capital come under the umbrella of SHL.

If anybody reads prospectus, pls share with us

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Softlogic entry into Insurance likely to pave way for unimaginable synergies

26 Re: Softlogic entry into Insurance likely to pave way for unimaginable synergies Mon Jul 11, 2011 7:12 am

asitha

27 Re: Softlogic entry into Insurance likely to pave way for unimaginable synergies Mon Jul 11, 2011 10:26 am

Lam

28 Re: Softlogic entry into Insurance likely to pave way for unimaginable synergies Mon Jul 11, 2011 10:36 am

nkalansu

29 Re: Softlogic entry into Insurance likely to pave way for unimaginable synergies Mon Jul 11, 2011 11:54 am

UKboy

30 Re: Softlogic entry into Insurance likely to pave way for unimaginable synergies Tue Jul 12, 2011 8:33 am

Quibit

31 Re: Softlogic entry into Insurance likely to pave way for unimaginable synergies Wed Jul 13, 2011 12:27 am

nkalansu

32 Re: Softlogic entry into Insurance likely to pave way for unimaginable synergies Wed Jul 13, 2011 7:25 am

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