Asia Capital enters share purchase agreement to buy 70% of Navara Capital Partners

Wednesday, 23 December 2020 00:07 -     - {{hitsCtrl.values.hits}}

  • Asia Capital to re-enter stock brokering business soon

Asia Capital PLC (ACAP) recently announced to the Colombo Stock Exchange (CSE) that the company had entered into a share purchase agreement to acquire 70% stake of Navara Capital Partners Ltd. (NCPL).

The agreement was entered into on Monday. 

Speaking on the developments Asia Capital PLC (ACAP) Chief Executive Officer Stefan Abeyesinhe said that upon acquisition of NCPL, Asia Capital would re-enter and recommence stock brokering business at a time when capital markets in the country were performing well due to policy certainty prevailing in the current economic landscape of the country. 

“Navara Capital Partners is currently carrying out business as an investment holding company and the company is having a 95% stake of Navara Securities, so we hope to recommence our stock brokering business shortly, which is part of our expansion plan,” Abeyesinhe added.

The disclosure to CSE highlighted that ACAP would acquire 3,536,400 ordinary voting shares representing 70% of NCPL held by Navara Capital Ltd. as per the agreement entered into by the parties. 

Recently the company announced that the management was in the process of relooking and focusing on Asia Capital’s astute investors in order to financially re-engineer the asset base. 

According to Abeyesinhe the company has now undergone the initial restructuring phase since the appointment of Nishan Sumanadeera-led Frontier Capital Partners as the Legal and Financial Consultant to ACAP group in September this year by key shareholders. 

“The management will focus on expanding into new business avenues to broad base the group’s revenue streams,” Abeyesinhe said, adding that the new acquisition had been facilitated by the expertise and consultancy of Frontier Capital Partners Ltd., as the consultant to ACAP group.