Carson to sell control of Guardian Capital Partners

Carson Cumberbatch PLC yesterday announced that its subsidiaries Ceylon Guardian Investment Trust (CGIT) and Guardian Capital Partners PLC (GCP) have entered into a Share Sale and Purchase Agreement (SSPA) with Singapore-based Gazelle Asset Management Ltd. for the sale of 84% stake held by CGIT in GCP.

The principal activity of the company is to hold and manage a portfolio of private equity investments.

The stake amounts to 21.69 million shares and purchase consideration per share will be determined based on the net asset value of the company as at a date mutually agreed by the parties prior to the transaction plus a premium of Rs. 40 million. 

The net assets per share as at 30 June was Rs. 28.11, up from Rs. 27.45 a year earlier and Rs. 26.80 as at 31 March. The share price of the GCP closed at Rs. 30.10, down by 3% on a volume of 1,681 shares.

The transaction is subject to certain conditions precedent contained in the SSPA. The approval of shareholders of the company for substantially altering the nature of business carried on under the Section 185(2)(d) of the Companies Act will be sought as part of the conditions precedent in the SSPA. An EGM will be convened as well. 

NDB Investment Bank is the financial advisors to the transaction.