Asia Capital buys 70% stake in Navara Capital Partners
View(s):Asia Capital PLC (ACAP) on Tuesday announced to the Colombo Stock Exchange (CSE) that the company has entered into a share purchase agreement on December 21 to acquire 70% stake of Navara Capital Partners Ltd (NCPL).
Speaking on these developments, ACAP Chief Executive Officer Stefan Abeyesinhe said that upon acquisition of NCPL, Asia Capital will re-enter and recommence stock broking business at a time when capital markets in the country are 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 per cent stake of Navara Securities. So we hope to recommence our stock broking business shortly which is part of our expansion plan,” Mr. Abeyesinhe added in a media release.
ACAP will acquire 3,536,400 ordinary voting shares representing 70 per cent of NCPL held by Navara Capital Ltd as per the agreement between the parties.
The release said that recently the company announced that the management is in the process of relooking and focusing on Asia Capital’s investors in order to financially re-engineer the asset base.
According to Mr. Abeyesinhe the company has now undergone the initial restructuring phase since the appointment of Nishan Sumanadeera, lead Frontier Capital Partners, as the Legal and Financial Consultant to the ACAP group in September this year by key shareholders.
“The management will focus on expanding into new business avenues to broadbase group’s revenue streams,” Mr. Abeyesinhe said adding that the new acquisition has been facilitated by the expertise and consultancy of Frontier Capital Partners Ltd, as the consultant to ACAP group.