Japanese Investors Infuse Rs. 400 Million Into Asia Capital PLC

Asia Capital PLC today announced the infusion of Rs. 400 million into the group by two Japanese investors, brothers Yoshimichi Watanabe and Eiji Watanabe through a private placement. As such, the group has issued 21.33 million fresh shares to both individuals giving them a 16.3% stake in the company. This makes the Watanabe brothers the 2nd and 3rd largest shareholders of Asia Capital PLC.

This fresh capital infusion strengthens the Group’s balance sheet as it is now able to clear 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.

Speaking on behalf of both brothers about the investment into Asia Capital Y. Watanabe said, “Sri Lanka is a beautiful country with a large pool of natural resources and furthermore the people are friendly and trustworthy. These are very important traits for us and we have worked closely with Asia Capital for the past two years so 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.”

Expressing his enthusiasm at the new investment  Stefan Abeyesinhe, Group CEO/Director, Asia Capital PLC said, “We are very excited to have the Watanabe brothers joining us to become shareholders in our company. This is a 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 capitalize on that growth.”

Over the past two years, Asia Capital has seen several Japanese investors making capital infusions into the company through private equity. The company currently has several Japanese individuals 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 is expected to greatly assist Asia Capital PLC in securing more capital for multiple projects in Sri Lanka.

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