Home / Front Page/ $ 75 m EAP deal struck with $ 35 m initial infusion

$ 75 m EAP deal struck with $ 35 m initial infusion


Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 8 May 2018 00:30


The long-awaited and crucial deal on EAP Group, linked to the revival of ETI Finance and Swarnamahal Financial Services, has been struck with an investment commitment of $ 75 million (nearly Rs. 12 billion), of which around $ 35 million has been infused initially. 

Daily FT learns that the foreign investor consortium, led by the Singapore-registered Blue Summit Capital Management Ltd., has signed a Sales and Purchase Agreement with the Edirisinghe family to divest 100% of EAP Films and Theatres and 100% of Swarnamahal Jewellers, as well as 40% of EAP Broadcasting, which owns popular television and radio channels. 

The divestiture, supervised by the Central Bank, is critical to resuscitate ETI and Swarnamahal Financial Services, which are now managed by the monetary authority. It is learnt that over $ 30 million has been infused as per stage one, and the balance is to be invested in tandem with other necessary approvals. 

Due diligence and Know Your Customer (KCY) procedures have been completed to the satisfaction of relevant authorities as well. 

The Directors of Blue Summit Capital Management are the Middle Eastern-based entrepreneur and investor Omar Siraj M Qandeel, and Singapore citizen and freight forwarding industry veteran Cyril Rodrigo. 

Omar S. Qandeel also serves on the Board of the Switzerland-based BlueOrchard, which is a leading impact investment manager worldwide, especially focusing on inclusive finance such as microfinance.

Also joining the consortium is Sri Lankan entity Ben Holdings Ltd. of Alex Lovell, who is renowned for reviving distressed assets and was involved in bringing private equity giant TPG to Union Bank PLC a few years ago. 

Blue Summit Capital Management is also linked to Serendib Holdings Ltd of Singapore, which recently made a successful takeovers and mergers offer to Serendib Engineering Group PLC, acquiring 84% stake in the latter.


Share This Article

Facebook Twitter


DISCLAIMER:

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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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

COMMENTS

Today's Columnists

Research and Development: Is it essential for Sri Lanka?

Thursday, 23 January 2020

Not long ago, on the day of our 71st Independence Day celebrations, the Army for the first time in our history paraded a locally built Multi-Barrel rocket launcher. It was never revealed that the Sri Lanka Army had an R&D wing named Center for Resear


Our heritage is Kandyan law; not Roman Dutch law as Rathana Thero thinks

Thursday, 23 January 2020

There were four bills presented by private members to the Parliament on 8 January (one bill is to be presented) which were already advertised in the gazette. They were to repeal the Kandyan Marriage and Divorce Act No. 44 of 1952; to repeal the Musli


Sri Lanka at tipping point ?

Thursday, 23 January 2020

Let’s accept it, Sri Lanka is in trouble with the economy growing at +2.6%, exports declining for the fifth month in a row to register a marginal +1% growth, tourism declining by -20% and S&P credit rating at B with Negative Outlook, which sure ind


The importance of business incubators for emergence of new businesses

Thursday, 23 January 2020

The new Government is poised to enter an arena in the development of entrepreneurship in the country which most of the developed countries have succeeded at the initial stages as well as in continuous efforts. The appointment of the new chairman and


Columnists More