Sri Lanka Distilleries Corp, transfers assets

June 25, 2012 (LBO) – Distilleries Corporation of Sri Lanka, has transferred stakes in a hotel and two plantations to a wholly owned subsidiary in a move that will consolidate non-alcohol businesses in a separate unit. Distilleries Company said it had transferred 54.06 million shares or a 41.7 percent stake in Browns Beach Hotel, to Melstacorp Limited, a fully owned subsidiary.

A 31.03 percent stake in Madulsima Plantations (9.0 million shares) were transferred at 9.10 rupee and a 43.15 percent stake in Balangoda Plantation (10.2 million shares) were transferred at 23.6 rupees.

IIFL Securities which crossed the stakes made a separate filing on behalf of Melstacorp.

Other businesses started by Distilleries, such as an insurance unit is already under Melstacorp.

Melstacorp also had the stake in Pelwatte Sugar, a firm that was expropriated by the state last year. Distilleries has protested that the law did not cover the firm as the land transactions referred to a period beyond what was stipulated in it.