Ben Holdings, Blue Summit Capital sets record clear on investment in ETI

The Board of Directors of Ben Holdings Ltd. and Blue Summit Capital yesterday issued a fresh statement setting the record straight with regard to their investment in ETI Finance Ltd.

Following is the full text of the statement:

“The Board of Directors of Ben Holdings Ltd. and Blue Summit Capital are deeply concerned regarding the recent publication and broadcasting of false and misleading statements pertaining to the acquisition of ETI assets. 

“$ 16 million, which is final tranche of the ETI transaction, was remitted to Sri Lanka and ready for settlement as far back as November 2018. However, the transacting parties could not reach a consensus on the valuation of the assets to be transferred in this final tranche, which consists of several investment properties. 

Further, the prevailing environment at the time impacted the business confidence of the Board and hence the settlement was delayed and the funds were sent back to origin. However, since then the ETI Directors have clarified their official position regarding the transaction, and all preparations were made to settle the final tranche of $16 million at the earliest.

“However, once again, interested parties who appear to have a misguided agenda have made public certain articles that are both misleading and inaccurate. Payment for the acquisition of ETI assets up to $54 million was effected to date, and all payments made to date have been subject to close scrutiny of the Central Bank of Sri Lanka (CBSL), and funds have been settled through a reputed international top tier bank in Europe. The Investors of Ben Holdings and Blue Summit Capital therefore categorically deny all allegations levelled against them, and are of the view that they have been the subject to unwarranted pressure and baseless accusations.

“Against this backdrop, the Board of Directors of the Investors is presently reviewing the steps to be taken to protect its investment in the properties business, and would determine its course of action based on the official position of the CBSL who is supervising the transaction. 

“We want to take this opportunity to also clarify that the price quoted for these assets by CBSL was in US dollars. We understand this was done to attract and boost Sri Lanka’s inflow of foreign direct investment. It is also notable that since our initial interest, the Sri Lankan Rupee has depreciated by more than 20%, and that if there was a local purchaser, they would have paid 20% in excess of what we paid due to this significant currency fluctuation.

“Our investment into these assets have directly protected thousands of depositors. However, it appears that parties with vested interests are motivated by personal gain. 

“The Boards of Ben Holdings Ltd. and Blue Summit Capital are controlled by individuals of Sri Lankan origin, committed to the prosperity of their motherland, and have been unnecessarily targeted and victimised.  We therefore challenge those interested parties that are publishing and broadcasting false and misleading statements to come forward within 7 days, and make a legitimate offer with proof of funds at the same equivalent value, and cost of purchase, including interest and all other related costs. The Board would give due consideration to such a legitimate offer.

“Nevertheless the Companies and its shareholders remain confident of the decision to invest in the former EAP Companies, Swarnamahal Jewellers Ltd., EAP Films & Theatres, and EAP Broadcasting Company Limited to Ben Holdings Ltd., and looks forward to turn around the ailing businesses, while building the future of more than 850 staff whose livelihoods are dependent on these establishments.”