Sri Lanka regulator approves ETI asset sale
Apr 05, 2018 06:55 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka's central bank has approved the sale of assets by troubled Edirisinghe Trust Investment Finance group to shore up capital, but more cash is needed, Governor Indrajit Coomaraswamy said.
The central bank's monetary board had asked the sale price of several asset-rich subsidiaries to be increased and had also vetted the deal for compliance with legal requirements he said.
Following the process, the funds will come in tranches he said.
"But we are not out of the woods yet," he said.
The new owners will take control of Swarnamahal Financial Services, a second finance company in the group as part of the asset sale, Coomaraswamy said.
Sri Lanka's The Sunday Times newspaper citing an un-named source said ETI group had struck a deal with a firm called Blue Summit Capital Management Pvt Ltd to sell the assets to a Singapore based fund, for 75 million dollars.
ETI needed about 17 billion rupees to boost capital, the report said.
Swarnamahal Financial Services, a second finance company, EAP Films and Theatres Pvt Ltd, EAP Broadcasting and Swarnamahala Jewellers will be sold.
A 40-percent stake in EAP Broadcasting which own TV and radio channels will also be sold. (Colombo/April05/2018)