Stassens still holds HNB reins

Hiran H. SENEWIRATNE

Stassens Group holding 43 per cent shares of Hatton National Bank (HNB), is now in the controlling position by its Chairman Harry Jayawardene, sources said.

The group holds HNB shares through their subsidiary companies including Sri Lanka Insurance, Lanka Distilleries, Punchalingam Associates, Sonnetto, Stassens Exports, Milfred Exports and CBD Exports.

However, Milford Exports and CBD Exports under Dr Vijaya Vitacchi who had a dispute long time ago with Jayawardene told the Daily News Business that they are no more problems with him (Jayawardene) over the HNB share deal.

Dr. Vitacchi who is the Deputy Chairman of HNB said that at present there is no any change in the Board despite holding majority shares of HNB by Stassens Group.

He owns nearly 16.3 per cent shares out of 43.43 per cent of Stassens Group.

However, two shareholders of HNB sold close to seven million shares to two foreign funds last week, boosting a turnover amounting to Rs. 1.1 billion while analysts see the makings of a silent tussle for control in the deal.

Indra Traders and its proprietor had sold 3.356 million shares while Shankar Somasunderam sold 3.5 million shares to two foreign funds based in California and Singapore dealers.

Brown and Company group, which is connected to LOLC, is believed to have possess 17.1 per cent of HNB, which has no idea of disposing its shares to anybody, where Somasunderam is also connected to Browns Company.

HNB has very good earnings and the buyers see this as a long-term investment of 5 to 10 years, Lanka Orix Securities sources told the Daily News Business.

Market sources said that four foreign investors, who are friendly towards LOLC, now owns approximately 30 percent of HNB shares. One foreign investor believes to be a Singapore based entity and another is a US based entity.

Among them it is believed to be a certain top foreign investor had bought a Global Depository Receipt tranche, which amounts to about 17 per cent of the voting shares of HNB.

Under new central bank laws, large shareholdings are prohibited and known connected shareholders have been told to sell down their stakes in banks.

The large tranches of HNB changed hands Wednesday for Rs. 119. The stock closed at 119.75, up 3.75 rupees.