ACAP now sells 40% of Asia Siyaka for Rs. 175 m

Wednesday, 20 July 2011 00:56 - - {{hitsCtrl.values.hits}}

Hot on the heels of plans to divest 53% stake in Asian Alliance for Rs. 2.39 billion, Asia Capital Plc (ACAP) is to now sell 40% stake in commodity broker Asia Siyaka for Rs. 175 million.

ACAP said yesterday it has entered into a share sale/purchase agreement with Asia Siyaka Private Ltd for the deal to be concluded on or before 1 September 2011.

ACAP is likely to book a tidy profit from the impending sale. In ACAP books, the 40% stake in Asia Siyaka is stated at cost of Rs. 12 million.

ACAP's Annual Report for 2010/11 financial year is pending but in 2009/10 financial year Asia Siyaka had made a profit of Rs. 78 million up from Rs. 37.5 million in the previous year.

Asia Siyaka boasts of the only team with national and international experience in the tea broking sector in Sri Lanka. It was a collaboration between Siyaka, whose founders have 20 years experience in the tea broking sector and Asia Capital in 1998.

From the impending sale of 53% stake in Asian Alliance for Rs. 2.39 billion, ACAP is also tipped to book hefty capital gain.