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Sri Lanka Equity Forum » Stock Market Talk » DISTILLERIES COMPANY OF SRI LANKA PLC (DIST.N0000)

DISTILLERIES COMPANY OF SRI LANKA PLC (DIST.N0000)

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K.Haputantri

K.Haputantri
Co-Admin
Hello Melastacorp

?Can you tell us the rationale behind transferring millions of SPENSE shares belonging to DIST @ 124.10 - a price lower than the lowest price (Rs: 125.10) of that particular day.

kalum


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
these sort of transfers always a question to me too. But considering SPEN is top 10 in market capitalization, Rs.1 change can do affect on numbers. Any other theory?

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
Would wait for Melstacopr response.

But I presume they want to form a holding company under melstacorp. Like VONE concept.

K.Haputantri

K.Haputantri
Co-Admin
@kalum wrote:these sort of transfers always a question to me too. But considering SPEN is top 10 in market capitalization, Rs.1 change can do affect on numbers. Any other theory?

What is the impact of this to NAVPS & profit of DIST? ?Haven't the share holders of DIST been cheeted millions of rupees by the transaction and Melstacorp (a privately owned company) gained undue profits. DIST share holders are affected.

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
Is n;t melstacorp a subsidiary of DIST?

@K.Haputantri wrote:
@kalum wrote:these sort of transfers always a question to me too. But considering SPEN is top 10 in market capitalization, Rs.1 change can do affect on numbers. Any other theory?

What is the impact of this to NAVPS & profit of DIST? ?Haven't the share holders of DIST been cheeted millions of rupees by the transaction and Melstacorp (a privately owned company) gained undue profits. DIST share holders are affected.

wiki


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
what if gov suddenly bring a law to takeover DIST from Harry

K.Haputantri

K.Haputantri
Co-Admin
@slstock wrote:Is n;t melstacorp a subsidiary of DIST?

@K.Haputantri wrote:
@kalum wrote:these sort of transfers always a question to me too. But considering SPEN is top 10 in market capitalization, Rs.1 change can do affect on numbers. Any other theory?

What is the impact of this to NAVPS & profit of DIST? ?Haven't the share holders of DIST been cheeted millions of rupees by the transaction and Melstacorp (a privately owned company) gained undue profits. DIST share holders are affected.
I have no knowledge about it . Even if it is true, if the intention of these transfers is to make Melstacorp the holding company same doubt still remains. I am no expert on these juggleries. Experts please educate us.

K.Haputantri

K.Haputantri
Co-Admin
You are correct slstock, I checked it in CSE web - Melastacorp is a subsidiary of DIST.

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
Melstacorp is 100% subsidiary of DIST . So this will not be a big issue.

Also look at 76 of annual report

http://www.cse.lk/cmt/upload_report_file/463_1346843612.pdf




@K.Haputantri wrote:
@slstock wrote:Is n;t melstacorp a subsidiary of DIST?

@K.Haputantri wrote:
@kalum wrote:these sort of transfers always a question to me too. But considering SPEN is top 10 in market capitalization, Rs.1 change can do affect on numbers. Any other theory?

What is the impact of this to NAVPS & profit of DIST? ?Haven't the share holders of DIST been cheeted millions of rupees by the transaction and Melstacorp (a privately owned company) gained undue profits. DIST share holders are affected.
I have no knowledge about it . Even if it is true, if the intention of these transfers is to make Melstacorp the holding company same doubt still remains. I am no expert on these juggleries. Experts please educate us.

The Alchemist


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Hi Melstacorp,

I have been following the DIST / MELSTACORP Group restrucuring exercise with interest. So far, it has been a home and home affair with DIST transfering its associate company stakes to Melstacorp its 100 % subsidiray, in exchange for additional shares in Melstacorp (i presume). The rationale of this restructuring , as you have mentioned before, is to make Melstacorp a VONE /JKH type premier Blue Chip Holding company, without the negative connotation of DIST due to its Liquor business. Another main reason i believe is to safeguard DIST from a SLIC/Pelwatte type situation where DIST would lose its valuable stakes like it did when SLIC was taken over.
Now for all this to make perfect sense, I beleive two things should happen.

1. After all other related company shares have been transferred to Melstacorp, Melstacorp will issue DIST Shareholders Melstacorp shares in exchange for their DIST shares via a share swap. Thus, Melstacorp the 100 % subsidiary of DIST will be the ultimate Parent Holding Company.

2. Listing of Melstacorp in the CSE.

If possible, can you please confirm that my thinking is correct ? more importantly, can you please tell us the timeframe when these 2 will happen ? in 2012, early 2013 or late 2013 ?

Thanks for your continued presence on this forum.

hunter

hunter
Moderator
Moderator
@The Alchemist wrote:

1. After all other related company shares have been transferred to Melstacorp, Melstacorp will issue DIST Shareholders Melstacorp shares in exchange for their DIST shares via a share swap. Thus, Melstacorp the 100 % subsidiary of DIST will be the ultimate Parent Holding Company.

2. Listing of Melstacorp in the CSE.

If possible, can you please confirm that my thinking is correct ? more importantly, can you please tell us the timeframe when these 2 will happen ? in 2012, early 2013 or late 2013 ?

Thanks for your continued presence on this forum.


That's very logical.
Finally DIST will be a subsidiary of MELS.N
Child become father and father become child!
lol!

TortoizePlus

TortoizePlus
Manager - Equity Analytics
Manager - Equity Analytics
@hunter wrote:
@The Alchemist wrote:

1. After all other related company shares have been transferred to Melstacorp, Melstacorp will issue DIST Shareholders Melstacorp shares in exchange for their DIST shares via a share swap. Thus, Melstacorp the 100 % subsidiary of DIST will be the ultimate Parent Holding Company.

2. Listing of Melstacorp in the CSE.

If possible, can you please confirm that my thinking is correct ? more importantly, can you please tell us the timeframe when these 2 will happen ? in 2012, early 2013 or late 2013 ?

Thanks for your continued presence on this forum.


That's very logical.
Finally DIST will be a subsidiary of MELS.N
Child become father and father become child!
lol!

Possible

RIO

RIO
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@hunter wrote:
@The Alchemist wrote:

1. After all other related company shares have been transferred to Melstacorp, Melstacorp will issue DIST Shareholders Melstacorp shares in exchange for their DIST shares via a share swap. Thus, Melstacorp the 100 % subsidiary of DIST will be the ultimate Parent Holding Company.

2. Listing of Melstacorp in the CSE.

If possible, can you please confirm that my thinking is correct ? more importantly, can you please tell us the timeframe when these 2 will happen ? in 2012, early 2013 or late 2013 ?

Thanks for your continued presence on this forum.


That's very logical.
Finally DIST will be a subsidiary of MELS.N
Child become father and father become child!
lol!

That is the strategy of Uncle Harry to protect all his investments in case of a Govt take over DIST like SLIC...By this way even the Govt take over the DIST still Harry will have the whole investments with him without loosing all his efforts/life time earnings...!
I made this remarks some time back and could not find the thread..[can some one post the link to that thread about 3, 4 months back]

Melstacorp Ltd

Melstacorp Ltd
Stock Analytic
Stock Analytic
Hi all

Sorry for the long delay.

1. As slstock stated above Melstacorp is a 100% owned subsidiary of DCSL PLC. Hence the transfer of Spence or any other holding of DCSL PLC to Melstacorp do not have an impact on the NAV or the effective holding of the DCSL PLC shareholders.

2. This kind of transactions are common in the companies. However we do not have a mechanism to make these transfers free of costs. CSE do not usually allow private transfers. Even the CSE allows it private transfers attract stamp duty. Apart from the buying/selling brokerage , the Cess, SEC fees, CSE fees are enormous. Therefore only saving we can do is to transfer at the lowest price possible at at the lowest brokerage allowed by the CSE. CSE allows crossings below 5% of the market price. This is the reason for the transfer at a 5% lower price that day.

3. While the basis of making Melstacorp the ultimate holding company remains the objective, the mode of getting there is not finalized yet. The share swap mentioned by The Alchemist is one of the options. However such a direct swap may not comply with a certain section in the Companies Act. Therefore once the method is determined by the company based on the legal advise naturally it will be known. So please forgive us for not speculating on it.

Thank you all for the interest and I apologize for the long delay in responding.

http://www.melsta.com

hunter

hunter
Moderator
Moderator
@Melstacorp Ltd,

Just curious.
R U representing Harry J?
Or you are just an investor/trader of related stocks?

The Alchemist


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@Melstacorp Ltd wrote:Hi all

Sorry for the long delay.

1. As slstock stated above Melstacorp is a 100% owned subsidiary of DCSL PLC. Hence the transfer of Spence or any other holding of DCSL PLC to Melstacorp do not have an impact on the NAV or the effective holding of the DCSL PLC shareholders.

2. This kind of transactions are common in the companies. However we do not have a mechanism to make these transfers free of costs. CSE do not usually allow private transfers. Even the CSE allows it private transfers attract stamp duty. Apart from the buying/selling brokerage , the Cess, SEC fees, CSE fees are enormous. Therefore only saving we can do is to transfer at the lowest price possible at at the lowest brokerage allowed by the CSE. CSE allows crossings below 5% of the market price. This is the reason for the transfer at a 5% lower price that day.

3. While the basis of making Melstacorp the ultimate holding company remains the objective, the mode of getting there is not finalized yet. The share swap mentioned by The Alchemist is one of the options. However such a direct swap may not comply with a certain section in the Companies Act. Therefore once the method is determined by the company based on the legal advise naturally it will be known. So please forgive us for not speculating on it.

Thank you all for the interest and I apologize for the long delay in responding.

Thank you Melstacorp for your forthright and candid comments. I am fairly certain that when Melstacorp is good and ready to go (list), it will earn a pre-eminent place as a truly Blue Chip Diversified Conglomerate / Investment Holding Company in the Colombo Stock Exchange.

All the very best.

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
Professional answers. Well done Melsracorp

@The Alchemist wrote:
@Melstacorp Ltd wrote:Hi all

Sorry for the long delay.

1. As slstock stated above Melstacorp is a 100% owned subsidiary of DCSL PLC. Hence the transfer of Spence or any other holding of DCSL PLC to Melstacorp do not have an impact on the NAV or the effective holding of the DCSL PLC shareholders.

2. This kind of transactions are common in the companies. However we do not have a mechanism to make these transfers free of costs. CSE do not usually allow private transfers. Even the CSE allows it private transfers attract stamp duty. Apart from the buying/selling brokerage , the Cess, SEC fees, CSE fees are enormous. Therefore only saving we can do is to transfer at the lowest price possible at at the lowest brokerage allowed by the CSE. CSE allows crossings below 5% of the market price. This is the reason for the transfer at a 5% lower price that day.

3. While the basis of making Melstacorp the ultimate holding company remains the objective, the mode of getting there is not finalized yet. The share swap mentioned by The Alchemist is one of the options. However such a direct swap may not comply with a certain section in the Companies Act. Therefore once the method is determined by the company based on the legal advise naturally it will be known. So please forgive us for not speculating on it.

Thank you all for the interest and I apologize for the long delay in responding.

Thank you Melstacorp for your forthright and candid comments. I am fairly certain that when Melstacorp is good and ready to go (list), it will earn a pre-eminent place as a truly Blue Chip Diversified Conglomerate / Investment Holding Company in the Colombo Stock Exchange.

All the very best.

18DISTILLERIES COMPANY OF SRI LANKA PLC (DIST.N0000) Empty DISTILLERIES........look on Wed Apr 04, 2018 10:43 am

max shanu


Equity Analytic
Equity Analytic
DISTILLERIES........look 21/= good price to buy

kjojo


Manager - Equity Analytics
Manager - Equity Analytics
yes huge buying on 21

20DISTILLERIES COMPANY OF SRI LANKA PLC (DIST.N0000) Empty How Is The Person on Wed Apr 04, 2018 11:00 am

max shanu


Equity Analytic
Equity Analytic
How Is The Person collecting share by rs 21/= each

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