Aloysius family exits JV with Browns
Four days after the controversial Treasury bond issue on February 27, the Aloysius family exited from its joint venture with the Browns Group.
On March 3, the Aloysius family company Perpetual Holdings Ltd (part of Perpetual Capital) sold its 50 per cent stake in FLC Joint Venture Company (Pvt) Ltd to Brown Investments PLC, bringing Browns’ total ownership to 100 per cent. FLC Joint Venture Company (Pvt) Ltd was a joint venture between Browns Investment PLC and Perpetual Holdings Ltd.
Ishara Nanayakkara has been appointed new chairman of the company, taking over from G.R. Aloysius who resigned along with G.A. Aloysius.
It was a Perpetual firm, Perpetual Treasuries owned by bond trader Arjun Aloysius and family, that figured in the Rs.10 billion bond deal floated by the Central Bank. Following allegations of insider trading, Arjun’s father-in-law Central Bank Governor Arjuna Mahendran – who has vehemently denied any wrongdoing – went on leave on Monday pending the investigation, with an announcement that Senior Deputy Governor P. Samarasiri will act on his behalf.
It was unclear whether the Browns group bought out the Aloysius family stake to distance itself from the controversy surrounding the bond issue.
FLC Holdings PLC, formerly Free Lanka Capital Holdings PLC, is a diversified holding company operating as an investment holding company, with interests in plantation and power, leisure and real estate sectors, tea and rubber manufacturing, boutique hotels and hydro power generation.
With this latest transaction, the Aloysius family company Perpetual Capital has severed connections with the Browns Group, but sources close to both companies insist they remain great friends.
“This was purely a business decision for Browns. In the current business environment, Browns wants to expand in related sectors,” a Browns official told the Business Times.