NDB Bank, which virtually controls Capital Development and Investment Company (CDIC) Plc after buying a major stake last week, is unlikely to de-list CDIC as yet, despite stock market speculation.
Stock market analysts said that NDB now has 99.66 percent of CDIC having bought Bank of Ceylon’s (BOC) 23.86 percent of the company and that it does not make sense for such a small quantity of 0.34 percent stock to be retained as a listed company. "NDB may de-list the company," a stock market analyst said.
However NDB officials said nothing has been discussed on the matter. "The argument that CDIC still being listed with the majority shares in NDB's name is there, but we have still not taken that decision," Eran Wickramaratne, CEO, NDB Bank told The Sunday Times FT.
CDIC's main asset is the minority stake it has in Aviva NDB Finance Lanka (ANFL) with 41.56.
“ANFL is the main shareholder of Eagle Insurance Plc with 87.27 percent,” Mr. Wickramaratne said.
When asked why CDIC was acquired, he said NDB has plans to invest in the financial services through this company. “When BOC was looking to sell their CDIC shares, it made sense for NDB to acquire it as we had bigger plans for the company,” he said.
Stock market analysts noted that this is a strong possibility as CDIC has a ‘fair amount of cash’.