can we expect a hefty dividend from CTHR?

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can we expect a hefty dividend from CTHR?

Post by CSE guide on Sun May 12, 2013 3:33 pm

There was no word up to yesterday on how Ceylon Theatres Holdings PLC will do with nearly Rs. 3 billion cash raised by the sale of its ceramics cluster including Horana plantations but analysts believed that of the cash may be distributed to shareholders and the balance utilized for property acquisition.

"About five years ago, the Dhammika Perera interests made an unsuccessful bid for the ceramic companies they now control but that failed and shares bought on the market were sold to the Ceylon Theatres group,’’ an analyst said. ``The acquisition makes a great deal of sense for Royal Ceramics (RCL) and Dhammika.’’

Mr. Nimal Perera, Dhammika’s financial advisor, speaking from Dubai said on Friday that they made a capital gain of about Rs. 150 million on their bid to buy the Lanka Ceramics group some years ago.

"This acquisition brings many synergies on procurement, supplies, showrooms and much more to our group. We can display our bath and sanitaryware in their showrooms. We didn’t have a wall tile company which we now have. There are a lot of advantages,’’ he said.

Asked whether RCL, part funding the acquisition on debt, could continue to pay dividends to its shareholders, Perera said: ``We’re a company making nearly Rs. 2 billion a year. We can service dividends.’’

He noted that with the latest acquisition, the Dhammika Perera interests control 28 listed companies.

Analysts also noted that CT Holdings Chairman Anthony Page, who will remain chairman of the acquired cluster, acted in concert with the buyers.

Horana Plantations with a substantial rubber portfolio that was one of the acquired companies will offer synergies to the Hayleys group controlled by Dhammika Perera, an analyst said.

(sunday island)

Last edited by CSE guide on Sun May 12, 2013 4:38 pm; edited 1 time in total (Reason for editing : spelling mistake)

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Re: can we expect a hefty dividend from CTHR?

Post by Admin on Sun May 12, 2013 4:20 pm

CT Group profit is around Ra 1.0bn mark from the CERA sale. This is publish in todays papers as well.

Last edited by Admin on Sun May 12, 2013 4:38 pm; edited 1 time in total (Reason for editing : add value)


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