Esufally family further strengthens controlling stake in Hemas

• Buys 1.68% stake or 10mn shares from foreign shareholder 

Driven by long-term prospects and discounted prices, the Esufally family yesterday strengthened its controlling stake in Hemas Holding PLC by a further 1.68 percent, as a foreign shareholder divested its entire stake.

Led by Hemas Holding PLC Chairman Husein Esufally, the other family members and Directors of the group— Abbas Esufally,  Imtiaz Esufally and Murtaza Esufally (through Ama Group (Pvt.) Limited)— equally purchased 2.5 million shares in four crossings, at Rs.72 per share. 

Accordingly, the direct and indirect stake held by the Esufally family in Hemas rose to 65.07 percent.

“Diversified into fairly strong business segments, we believe in long-term prospects for Hemas. At this type of valuations, we think it was a significant discount to the true value of the company,” Husein Esufally told Mirror Business commenting on the purchase. 

According to market sources, Ruffer Investment’s LF Ruffer Pacific and Emerging Markets Fund was the most likely seller. The fund held exactly 10 million shares or a 1.68 percent stake in Hemas, as at end-June, being the ninth largest shareholder.

The foreign outflows from Hemas stock was recorded at Rs.720 million, the First Capital Research data showed.
Ruffer Pacific and Emerging Markets Fund in its June quarter performance report announced the closure of the fund.

“This fund will close to new subscriptions on July 28, 2021, prior to being wound up,” it said.

The investors in the fund are expected to receive a cash payment based on their current holdings.

The fund had already divested its holdings in several firms, including Commercial Bank PLC and Cargills Ceylon PLC. The fund’s asset allocation for Sri Lankan equities came down 5.9 percent at-end June.

At yesterday’s market closure, Hema’s share price was down by 60 cents or 0.85 percent to Rs.70 per a share. 
(NF)