Distilleries recent inter-company share transfers are to retire its over Rs. 3 billion debt acquired when buying Sri Lanka Insurance Corp., say stock analysts.
For a second day running, Distilleries sold it holdings in Aitken Spence to Sri Lanka Insurance Corp., at a premium of Rs. 15 above the market. rn
rnSo far brokers confirm that over 2.8 million shares changed hands, generating a generous Rs. 795,15 million over the two trading days. rn
rnThe consortium led by the Distilleries Group paid Rs. 6 billion for the 90 per cent sake in the insurance giant in April 2003.rn
rnMilford Holdings a company jointly owned by Distilleries and Aitken Spence holds nearly eighty percent of the shares while other foreign financiers will hold over ten percent and employees a balance 10 per cent.rn
rnDistilleries used its internal funds, as well as loans from Hatton National Bank and Seylan Bank at interest rates ranging of 11.5 percent to 12.5 percent to pay for its stake in the insurance giant.rn