Carsons Cumberbatch divests stakes in three companies

Hiran H. Senewiratne

The Carsons Cumberbatch Group together with its subsidiary, Ceylon Guardian divested its stakes in Union Assurance (CCG), Ceylon Cold Stores (CCS) and John Keells Holdings (JKH), market sources said.

The resulting major capital gains for the Group, could be an ideal opportunity for the company to liquidate to purchase better available options or shares in the stock market, Lanka Securities (Pvt) Limited (LSPL), source said.

According to company sources the CCS and JKH were accounted as a long-term investment in Carson’s Group, Ceylon Guardian and Ceylon Investment balance sheet and Union Assurance was accounted as a long term investment in Ceylon Guardian and Ceylon Investment, which Carsons Group accounted as an association after taking all transactions into account.

It is estimated that the gains for Ceylon Investment would be around Rs 238.8 million (Rs 9.9 per share) and the Carsons Group to be around Rs. 650.5 million (Rs. 106.4 per share).

According to market sources Ceylon Investment and Ceylon Guardian are listed companies and in the current context Carsons is in a better position to invest in other lucrative shares or entities.

The Carsons Cumberbatch Group spans across Sri Lanka and the South-East Asian region. The company also entered into strategic alliances with global partners. The company’s key international alliance partners both past and present includes Carlsberg Brewery Malaysia, Rabobank of the Netherlands, Air France and KLM Royal Dutch Airlines.

As a company focused on results the emphasis has been towards the creation of sustainable long term shareholder value in all their businesses.