PM meets Japanese investor in BoC-Seylan deal

The Japanese investor involved in the Bank of Ceylon (BoC)-Seylan Bank deal met with the Prime Minister Ranil Wickremesighe on Friday following the cancellation of share transaction.

The Premier had expressed regret over the cancellation but informed the rather ‘shocked’ buyer that Government policy is to not sell public assets, a source close to the investor told Daily FT.

The meeting which lasted about 10 minutes was facilitated by a party not involved in the much publicised deal.

“The meeting goes a long way in enhancing investor confidence,” one stock broker said, appreciating the gesture by Wickremesighe to meet the aggrieved investor. The cancellation of the transaction was viewed by some analysts as damaging the reputation of BoC and confidence in the capital market. 

The Japanese investor is believed to be Motohiko Homma whose Singapore entity Asir and Nek Ltd. paid for the shares. 

The buyer, ‘a self-made serial entrepreneur’ with a dominant interest in technology and aviation, has investments United States, Australia, Philippines, Japan and Singapore, the source said.   

A day after BoC sold its 7.5% stake in Seylan Bank to Japanese investor for Rs. 1.3 billion, the Prime Minister ordered the transaction to be cancelled stating that the deal took place without proper approval from relevant authorities and came at a time when the Government had issued a directive against the sale of State ownership in commercial banks. 

The case has been handed over to Criminal Investigation Department for inquiry by the Public Enterprises Development Ministry.

The face-to-face meeting between the Premier and the investor according to analysts may dismiss rumours that the latter was a front for a local party eyeing control or making an entry into Seylan Bank.