Access Engineering (AEL) director sells Rs400mn worth of stock

Access-Engineering

June 22, 2019 (LBO) – Colombo Stock Exchange (CSE) listed Access Engineering (AEL) in a stock market disclosure reported that a non-executive director had sold a significant amount of his shares.

Ranjan Gomez has sold 30,000,000 shares at a price of Rs13.2/share. Total proceeds from the sale of shares is approximately Rs400mn.

As of March 31, 2019, Gomez had reported a total shareholding of just over 75,000,000 shares. The insider sale is roughly 40% of his total holdings. Gomez has been a seller of significant amounts of stock over the years, however this recent large sale is at a strikingly low price.

As of March 31, 2019, AEL reported a net asset value of Rs21.4/share. Gomez’s sale at Rs13.2/share represents a valuation of just over 60% of book value.

AEL’s last quarterly results were solid reporting net income of just under Rs700mn for the quarter, however the construction industry is being badly affected by the recent economic downturn.

Most stocks on the CSE are trading at low valuations due to a confluence of negative catalysts which include a slowing economy, a constitutional crisis, and one of the worst incidents of global terrorism in recent history.