Sri Lanka’s E Channeling PLC, software development and ICT service provider to the island’s healthcare sector has acquired 13.2 percent stake in Blue Diamonds Jewelry Worldwide PLC, by June 8th, 2011, becoming the single largest shareholder at the jewelry exporter, according a stock exchange filing.
Blue Diamonds is Sri Lanka’s largest manufacture and exporter of diamond jewelry in the island and the only diamond jewelry firm listed on the Colombo Stock exchange. The 100 percent export oriented firm approved under the Board of Investment of Sri Lanka with the factory located at the free trade zone in Katunayake.
The loss-making jewelry firm has been actively trading at the stock exchange during the last few days, becoming a hot stock for retail investors.
Speculation among investors at the Colombo bourse about the possible takeover of Blue Diamonds drove the share price to a high of 7.10 rupees morning trade, today.
By mid morning the share was trading at 6.70 rupees levels and closed at 5.80 rupees.
E- Channeling was also up 70 cents at 5.50 rupees.
E channeling bought 13 million 672,100 ordinary voting shares in Blue Diamonds, overtaking Ceylinco insurance which was so far the single largest shareholder in Diamonds holding five million 085,817 shares or 5.24 percent stake.
E- Channeling is backed by a British American Technology (Pvt) Limited which also has stakes in several other firms. Sri Lanka Insurance Corporation, the island’s largest insurer and its Life Insurance Fund are other major shareholders of the Company.