Steradian Capital-linked parties buy 45% of ASCOT for Rs. 242 m

Individuals linked to real estate specialists Steradian Capital yesterday collectively bought 45% stake in ASCOT Holdings Plc for Rs. 241.6 million.

The stake, amounting to 5.7 million shares, was done at Rs. 42.50 per share. 

In a disclosure to the market, Acuity Stockbrokers said a Mauritius registered company Eighth Wonder bought 3.1 million shares, Steradian Capital Chairman Ian Joseph McVeigh and Executive Director Archie Warman, both living in the UK bought 1.47 million and 0.42 million shares respectively and other Executive Director Hardy Jamaldeen bought 0.69 million shares. 

At the Group level, the net asset value of ASCOT was Rs. 52.77 per share and at the Company level it was Rs. 40.47 per share.

ASCOT yesterday topped the list of gainers, up 32.4%, hitting an intra-day high of Rs. 44.50 before closing at Rs. 43.70. It saw 5.95 million shares transacted via 568 trades for Rs. 252 million.

Among the stakes bought were the shareholding of Axis Investments pledged with Pan Asia Bank and St. Louis Capital. 

This made some to term it a hostile takeover while others claimed the stakes were up for sale for some time though none came forward as there was not clear ownership of control. 

Axis, owned by Rohan Iriyagolle, held 26.4% and St. Louis Capital of Pasan Padanayake held 16.35% respectively in ASCOT as at 30 June 2017. The other shareholders included Nimal Perera (11%), F.M. Firdouse (7.8%) and Boston Capital 9.7%. The latter is believed to be controlled by Iriyagolle.

The Steradian-led consortium may have favoured the pledged stake despite no clear control as Firdouse is a related party to Jamaldeen though he was not part of yesterday’s consortium of buyers.

Sources said Steradian consortium, which has to make a mandatory offer, has indicated it would like to work with those holding sizeable minority shares. This includes Iriyagolle, Firdouse and Perera.

Steradian Capital Investments is a multi-faceted consultancy and advisory business providing services and solutions to both foreign investors investing in Sri Lanka and local entities exposed to Sri Lankan real estate. It focuses entirely on Sri Lankan real estate opportunities, offering investment, development and management advice with the ability to co-invest.

Over the four years Steradian has built up gross assets worth over $ 50 million in Sri Lanka. Some of Steradian’s projects and properties are Lincoln’s Inn Court Ltd., an office development, Mulberry Residence, an apartment complex, AV 15 city apartment cum hotel, leisure projects W15, a beach boutique hotel and W15 Escape, a boutique hotel in Weligama, Dutchbay Holdings Ltd. and prime land blocks in Baseline Road, Darley Road Ltd. and Thudella.

Last month ASCOT announced plans to sell 75% stake in its leisure arm for Rs. 70 million to Fairway Holdings. Ascot Leisure has land and approvals to build a 30-room hotel in Yala.