Sri Lanka's DFCC Bank Climbs to Record on Sale of Stake in Commercial Bank

DFCC Bank Ltd. rose to a record high in Colombo trading after selling a 10 percent stake in Commercial Bank of Ceylon Plc, Sri Lanka’s largest non-state lender by assets, to an undisclosed buyer.

Shares of DFCC rose 14 percent to 238 rupees as of 12:26 p.m. local time. The Colombo Stock Exchange earlier halted trading in the stock following the sale, pending an announcement from the Colombo-based bank.

DFCC sold 23.4 million shares in Commercial Bank for 5.86 billion rupees ($51.5 million), or 250 rupees each, it said in a statement to the exchange today. The lender, the biggest shareholder in Commercial Bank, will account for its remaining 18.67 percent stake as an investment security instead of as an investment in an associate company, it said, without providing additional details.

Shares of Commercial Bank rose 1.1 percent to 252 rupees. The stock has advanced 33 percent this year.

To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net