$ 75 m EAP deal struck with $ 35 m initial infusion

Tuesday, 8 May 2018 00:30 - - {{hitsCtrl.values.hits}}

The long-awaited and crucial deal on EAP Group, linked to the revival of ETI Finance and Swarnamahal Financial Services, has been struck with an investment commitment of $ 75 million (nearly Rs. 12 billion), of which around $ 35 million has been infused initially.

Daily FT learns that the foreign investor consortium, led by the Singapore-registered Blue Summit Capital Management Ltd., has signed a Sales and Purchase Agreement with the Edirisinghe family to divest 100% of EAP Films and Theatres and 100% of Swarnamahal Jewellers, as well as 40% of EAP Broadcasting, which owns popular television and radio channels.

The divestiture, supervised by the Central Bank, is critical to resuscitate ETI and Swarnamahal Financial Services, which are now managed by the monetary authority. It is learnt that over $ 30 million has been infused as per stage one, and the balance is to be invested in tandem with other necessary approvals.

Due diligence and Know Your Customer (KCY) procedures have been completed to the satisfaction of relevant authorities as well.

The Directors of Blue Summit Capital Management are the Middle Eastern-based entrepreneur and investor Omar Siraj M Qandeel, and Singapore citizen and freight forwarding industry veteran Cyril Rodrigo.

Omar S. Qandeel also serves on the Board of the Switzerland-based BlueOrchard, which is a leading impact investment manager worldwide, especially focusing on inclusive finance such as microfinance.

Also joining the consortium is Sri Lankan entity Ben Holdings Ltd. of Alex Lovell, who is renowned for reviving distressed assets and was involved in bringing private equity giant TPG to Union Bank PLC a few years ago.

Blue Summit Capital Management is also linked to Serendib Holdings Ltd of Singapore, which recently made a successful takeovers and mergers offer to Serendib Engineering Group PLC, acquiring 84% stake in the latter.