The Sundaytimes Sri Lanka

Ajith Devasundera sells his Browns stake for Rs. 1.3 billion


Two of Sri Lanka’s biggest stock market investors, Ishara Nanayakkara and Ajith Devasundera have finalised a one-billion-rupee deal in which the former has consolidated control of Browns through his LOLC group.

The Colombo Stock Exchange was informed on Friday that LOLC had taken 100 per cent control of Diriya Investments Pvt Ltd, the holding company of the Browns Group, by signing a Share Sale & Purchase agreement with Ajith Devasundera to acquire his 50 per cent stake in Diriya for Rs 1.3 billion. The balance 50 per cent was held by LOLC. The deal has been undertaken by LOLC Investments of the same group and the agreement signed on Thursday. Through its subsidiaries, Diriya controls 49.8 per cent of Browns while LOLC has a separate 4.7 per cent stake in the company.

“We are acquiring Diriya as we want to consolidate further,” a LOLC official told the Business Times, adding that this negotiation was going on for about a month. Mr. Devasurendra, who has completely exited his investments in Browns, is chairman of Taprobane Securities which was involved in the controversial The Finance Co- National Savings Bank stock market transaction that was subsequently reversed.

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