Reduction of Equity Holding in Commercial Bank of Ceylon PLC (COMB)

The DFCC Bank sold ordinary voting shares amounting to 9.99% of the issued voting shares in COMB  today through the Colombo Stock Exchange.  Particulars relating to this transaction are as follows:

Number of shares sold : 23,431,485
Sale price: Rs 250 per share
Gross sale proceeds: Rs 5,858 million

The one-off profit after tax accruing to the DFCC Bank from this transaction is Rs 3,786 million. The contribution to consolidated income is lower due to the higher equity accounted carrying value of the shares in the consolidated balance sheet.

The residual ordinary voting shares held by DFCC Bank in COMB has now reduced to 18.67 %.  DFCC Bank will account for the residual investment in COMB as an Investment Security instead of as an investment in associate company.