Large stockbroking deal off
View(s):A large Colombo stockbroking house, which is in the market either for part or full divestment by the major shareholder, will not be sold in a hurry as the prospective buyers have backed out, according to stock market sources.
“A party which competed the due diligence wasn’t happy with what they found because losses and inter company transactions have driven this company to a bad shape,” a well-informed source told the Business Times.
He said that the prospective buyer wasn’t happy, “and so the deal’s off.”
He added that the major shareholder, who is a foreign party, has given the mandate to sell this to some connected parties and they are showing it to interested parties. He said they were either looking to sell a part or full stake in the company and already have had discussions with some interested parties.
The foreign stakeholder wants to pursue other businesses in other countries, according to the source. He added that the mandate to sell was given late last year.
“They’re to divest some subsidiary companies as well,” the source said.
The source said they want to only retain their leisure arm.
The company has interests in securities, finance and private equity which include leisure, IT and digital entertainment.
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