National Savings Bank (NSB), a wholly owned government institution, became the single largest shareholder of National Development Bank Ltd. (NDB) when they acquired 4.5 million shares of the company, or nearly an 8.4% stake in NDB, for Rs 430 million at Thursday’s trading.

Prior to Thursday’s purchase, NSB was believed to have had 2.5 million shares in NDB, or a 4.65% stake in the company. NSB is now believed to be having a 13% stake in the company.

NSB’s purchases were made at Rs 95.50 a share, Rs 3.50 more than Thursday’s closing price of Rs 92 and Rs 1.75 more than Thursday’s closing price of Rs 93.75.

When questioned as to whether NSB lost-out on the deal, considering the fact that they had paid a seemingly premium price for these shares, sources said that when considering that NDB’s net asset value was found to be Rs 120, it could be concerned as a good buy and not a loss.

If in the event NSB’s stake in the company now adds upto 13%, then the government’s total stake in NDB, considering the fact that other institutions such as the Treasury, Bank of Ceylon (BoC), Central Bank and the Employees’ Trust Fund (ETF) which also have shares in NDB and are fully owned government entities, they would now collectively command a 35% stake in the company.

The 10 biggest shareholders of NDB, on an individual basis as at Thursday were NSB, with a 13% equity in the company leading the list, followed by Dhammika Perera (10%) with 5.3 million shares, Treasury (7.33%), BoC (6.77%), Central Bank (4.88%), ETF (3.5%), Aberdeen Fund (3.45%), Hatton National Bank Ltd (3.2%) and both CDC Group and NDB Employee Share Option Plan (2.56% each).

Meanwhile, there were two major sellers involved in Thursday’s sale of NDB shares. They were deputy chairman Lanka Bell Shankar Somasunderam (two million shares) and First Capital Ltd (2.5 million). Both parties are believed to have exited from NDB with these sales which were executed at Rs 95.50 a share. They are believed to have profited from this transaction after buying these shares at the Rs 30s and Rs 80 levels earlier. (PA)