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Who is the mystery Saudi Arabian buyer?
Sunday, 14 August 2005 - 2:24 AM SL Time
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Mr. Raj Rajaratnam, the third biggest shareholder of the Commercial Bank, on Friday sold the majority of his 5.77% stake of what is claimed to be the best privately owned bank in the country bank at a price of Rs.140 a share commanding a 10-rupee premium to the market.
A Saudi Arabian based in the Middle East was the buyer, well informed sources said.
Analysts noted that Rajaratnam who retains a small proportion of his stake had made a tidy capital gain from this transaction made some weeks after the bank issued a 1 for 1 bonus share issue.
A total of 5.3 million Commercial Bank was done on Friday at prices ranging from Rs.130 to Rs.140, the bulk being Rajaratnam`s stake. Brokers said that a top price of Rs.141 was paid in this `foreigner to foreigner crossing`` for most of the stake while between Rs. 130-140 was paid for a smaller quantity of the shares.
The buyer was described as a Middle East investor new to the Colombo market but his identity was not disclosed.
John Keells Stockbrokers acted for Rajaratnam while Lanka Orix Securities were the buying broker. There was no clue on the identity of the buyer although there was speculation about a foreigner ``fronting`` a local interest.
According to the last published annual report of the Commercial Bank Rajaratnam owned a little over 3.7 million shares of the bank comprising 5.77% of its equity. He had increased his stake from the previous year when he held nearly 3.3 million shares amounting to 5% of the Commercial Bank.
Rajaratnam is the biggest individual shareholder of the John Keells Holdings group behind Sohli Captain and related parties. He has also invested in several other blue chip companies here both on his own account and through a fund.
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