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

Will power cuts solve electricity crisis?

Tuesday, 23 April 2019

The country faced electricity power cuts, reminding citizens of early 1990s, which resulted in private power producers supplying electrical power with long-term power supply agreements. Today, most have completed their agreement period, but some were

Easter attack: Going beyond condemnation

Tuesday, 23 April 2019

Yesterday was Easter Sunday; 227 persons [at the time of writing] have been killed, and many times more injured. The primary targets were churches and international hotels. It seems clear that the extremist group ISIS (Islamic State of Iraq and Syria

Easter Sunday nightmare

Tuesday, 23 April 2019

This is the most important day of the year for Christians – the Peaceful Easter Sunday or Easter Day was shattered by deadly explosions in several Christian churches throughout the country; and we excoriate such hatred in our beloved country. We th

Poignant pondering on a patriarch

Monday, 22 April 2019

Almost five months have gone. It is with a profound sense of sadness that we experienced the demise of our veteran teacher, respected author, legal luminary, an accomplished ambassador, an eminent public servant and an amazing human being, Dr. Wickre

Columnists More