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Safe Hands


Commercial Bank of Ceylon has floated a share ownership trust called Jaycey Trust Services to acquire and hold shares on behalf of its employees.
In a statement to the Colombo Stock Exchange, the bank said SEC rubber stamped the deal last week to buyback 5 percent of its shares held by Sri Lanka Insurance Corp at Rs.
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165 each.rn

rnThe deal is expected to go through early this week, as a private transfer outside the trading floor.rn

rnThe share buyback is funded by the banks own cash. In turn, Commercial Bank is offering concessionary finance to help its employees to buy the shares.





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rnSLIC owns 29.91 percent in Commercial Bank and the government plans to dispose these shares as part of the insurance giants privatisation programme.

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rn

rnWashington based International Finance Corp (IFC) signed a deal last week to buy15 percent of this block at Rs. 165 per share. rn

rnWith its 15 percent investment in Commercial Banks voting shares, IFC will be offered a seat on the banks board.rn

rnIFCs entr

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