Japanese investors inject Rs. 400m into Asia Capital

Two Japanese investors, brothers Yoshimichi Watanabe and Eiji Watanabe have invested Rs 400 million in the Asia Capital PLC group through a private placement.

As such, the group has issued 21.33 million fresh shares giving them a 16.3% stake in the company. This makes the Watanabe brothers the second and third largest shareholders of Asia Capital PLC.

This fresh capital infusion strengthens the Group's balance sheet as it clears out a significant portion of its debt.

The move also changes the shareholding of the group to be in line with Colombo Stock Exchange (CSE) regulations.

Y. Watanabe said, "Sri Lanka has a large pool of natural resources and the people are trustworthy. These are important traits for us and we have worked closely with Asia Capital over the past two years."

"We are convinced we have found the right partner for our investment plans. Sri Lanka is one of the few countries in Asia which still has a huge growth potential and we look forward to bring in more Japanese investors to Sri Lanka," he said.

Group CEO and Director, Asia Capital, Stefan Abeyesinhe said, "We are excited to have the Watanabe brothers as shareholders in our company.

This is testament to the faith foreign investors have in Sri Lanka and Asia Capital and the obvious potential for growth that they see."

"Sri Lanka has shown exceptional growth figures during the past four years and the CSE has seen strong growth in net foreign inflow over the past two years. This capital infusion will enhance our ability to capitalise on that growth," he said.

Over the past two years, Asia Capital has seen several Japanese investors making capital infusions into the company through private equity. The company has several Japanese people and companies investing in its subsidiaries, especially in the leisure sector.

The fact that the Watanabe brothers will be significant shareholders of the parent company will further strengthen the confidence in the Group among other Japanese investors. This will assist Asia Capital PLC in securing more capital for multiple projects in Sri Lanka.

Asia Capital PLC is one of the largest investment banks in Sri Lanka to be listed on the Colombo Stock Exchange. As a group, Asia Capital has identified strong potential in the property, leisure and real estate sectors and is focusing on these avenues of growth. It plans to expand its leisure and property sectors over the next few years.