Home / Front Page/ $ 60 m EAP Group sale to UK Lyca Group today?

$ 60 m EAP Group sale to UK Lyca Group today?

Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 20 February 2018 00:36


The sale of EAP Group assets for $ 60 million is speculated to be concluded today, with foreign investors having arrived yesterday, Daily FT learns. 

The Central Bank has been negotiating with Singapore-based Straits Grid Ltd., and the intermediary, Malaysian businessman Sudhir Jayaram, to dispose the assets owned by ETI Finance.  

The actual buyer is believed to be Lyca Group, UK,  owned by Sri Lankan-born successful entrepreneur Allirajah Subaskaran.

The EAP Group assets identified for sale include the television and broadcasting business, cinemas, and hotels.  Daily FT learns the planned sale also got a higher offer from Asia Broadcasting Corporation Group, owned by Rayynor Silva. 

Central Bank has been tight lipped about negotiations or naming interested parties. 

There have been concerns and questions over the credentials of Sudhir, who is alleged to have been nabbed for taking foreign currency undeclared at Katunayake airport. 

Sources said Sudhir is only an intermediary, and opting for eventual buyer Lyca Group also means inflow of foreign exchange. ABC Group, on the other hand, would be mobilizing the funds via local banks.  Acquisition by ABC would also mean additional frequency, further enhancing its dominance in television and radio business. 

Sudhir is also part of the consortium, which includes SupremeSAT famed R. M.  Manivannan, engaged in the $ 250 million Horton Square mixed development project in Colombo 7, which the Prime Minister-chaired Cabinet Committee on Economic Management (CCEM) has raised various questions over. 

He was also named in the United Nations investigation into the famous Iraqi oil-for-food scandal in late 2000. 

Under the proposed investment proposals, ETI Finance will benefit with a cash infusion in excess of Rs. 11 billion, with all its subsidiaries receiving a further cash infusion of around Rs. 4 billion.

This will be one of the largest investments into the country’s non-banking financial sector. 

The deposit base of ETIF is about Rs. 33.5 billion from 33,000 depositors, while SFSP is about Rs. 2.5 billion deposits from 2,300 depositors. Negative net worth of ETI Finance is Rs. 19 billion and that of SFSP is around Rs. 1.2 billion.

With a view to safeguard the interests of the depositors and ensure stability of the financial system, the Central Bank in January appointed a new management panel to oversee troubled ETIF, and listed Swarnamahal Financial Services PLC. 


Share This Article

Facebook Twitter


1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.


Today's Columnists

Difference between a woman and a man (yin and yang) and finding solutions to violence in society

Thursday, 18 July 2019

This is not at all a philosophical discourse on gender differences, or the complementary roles of yin and yang (women and men) in social or biological formation. This is also not to speak about who is superior among the two. This is just an observati

I wish Sajith Premadasa had taken up a challenging ministry to showcase his prowess

Thursday, 18 July 2019

Expectations, father and son Sajith Premadasa has put his hands up for leadership in the party and for nomination by the United National Party in the forthcoming presidential elections. I wish Sajith had tested himself, and had given the public a cha

Foreign Affairs and Defence to be one portfolio?

Thursday, 18 July 2019

Unless we are all suffering from dementia, the last experience with a foreign military on our soil should be very clear in our heads. The Indian Peace Keeping Force landed in Sri Lanka to supposedly bring peace to the war-torn country when the LTTE t

Federer lessons for Sri Lanka tourism

Thursday, 18 July 2019

The Wimbledon Men’s Final in 2008 was termed as the best match the world has seen between the two arch rivals Federer and Nadal. But, what we saw last Sunday between the two of them after 11 years sure shocked the world. Many just asked the questio

Columnists More