Harry Jayawardena-nominees out of Asiri Hospitals Group

A majority of Asiri shareholders this week decided not to re-elect nominees and allies of business tycoon Harry Jayawardena to the two hospitals which the latter has been eyeing.

Avanka Herath, a nominee, and Jayawardena allies - S.R. Pitipana Arachchie and P.P. Subasinghe – were not re-elected as directors at Asiri Hospitals and Asiri Surgical during the two companies’ AGMs held on Thursday, in a move clearly showing that few want the Jayawardena-influence (through the latter’s Sri Lanka Insurance – SLI-which has stakes in both) in the hospitals.
All three directors came up for re-election at the AGMs where a vote was taken to decide the fate of the three directors, all seen backing Jayawardena who wants control of the hospitals. Soon after acquiring Apollo Hospitals, Jayawardena acted in concert with D.K. Subasinghe, a shareholder and father of P.P. Subasinghe in Asiri Surgical recently, bringing his stake to 38 percent and triggering a mandatory offer to acquire the hospital.

Jayawardena brought 20 percent from P. Pitipanarachchi, former chairman of the hospital, who had differences with Ashok Pathirage, Managing Director at both Asiri Hospitals and Asiri Surgical (Pvt) Ltd and Softlogic owner and the director board. G.H.A. Wimalasena is the Pathirage-backed chairman of both hospitals.

Pathirage told The Sunday Times FT that Thursday’s vote by the shareholders reinforces the fact that Jayawardena will not succeed in the mandatory offer. “We will come through from the mandatory offer,” he added. Softlogic owns a major stake in Asiri Hospitals which in turn holds the majority shares in Asiri Surgical.

D.K. Subasinghe visibly upset about the outcome at both AGMs, said that in future he will be taking the ‘necessary steps’, but did not elaborate. “What the ‘Softlogic man’ said that he would do, he has done,” he told The Sunday Times FT.

A few shareholders who participated at the AGM were not aware about the issues at Asiri and were upset that they had voted in favour of re-election of the three directors, whereas they in fact oppose Jayawardena and his business tactics.

“The entire AGM was conducted in English and we did not understand what was happening,” a shareholder said in Sinhala, adding that another person suggested that there should be translations in Sinhala in the future.

“I cast my vote ‘for’ re-electing Jayawardena’s allies, whereas had I been aware of it, I would have never done so,” he said, explaining that this is purely because he did not approve of the way that Jayawardena conducted his business affairs.
However, A.A. Silva, a shareholder at both companies said that he was aware of what was happening and wanted Jayawardena’s directors in. “I feel that he is a very good entrepreneur and it is a good thing to have his nominees on the directorate,” he added.