Vijay Eswaran-linked Asia Capital takes over
Nivard-promoted Capital Reach Holdings

Goldquest-famed top investor Vijay Eswaran-linked Asia Capital yesterday sealed its effective takeover of Capital Reach Holdings (CRH), an unlisted financial services group, one of its promoters being Nivard Cabraal, prior to being appointed as Central Bank Governor.
On top of increasing its stake to 47% early last week, Asia Capital yesterday confirmed it now owns 56% in CRH.
Originally, Asia Capital had a 14% stake devolved on it from Vanik, via a Court order. Subsequently, Asia Capital began collecting several blocks separately, starting from a 5% block owned by Readywear Industries’ M. Yaseen and 28% owned by Suntex Holdings, a Malaysian investor, which also bought into Ferntea, which is up for liquidation now. On Friday, Asia Capital bought around 10% stake (or 2.5 million shares) in CRH held by Finco Group.
It is estimated that Asia Capital had invested Rs. 75 million to increase its stake from the previous 14% to 56% at present.
CRH has a subsidiary, Capital Reach Leasing, which is listed on the Colombo bourse, whilst it is also engaged in Factoring and Trading operations.
Though Vijay Eswaran has a 28% stake in Asia Capital, there are two other Malaysian shareholders, each owning more or less a similar stake of below 30%.
Among remaining investors in the widely-held CRH are Nivard Cabraal Holdings, MAS Holdings as well as Vanik.
Sources close to the deal dismissed any alleged nexus between original promoters of CRH and Asia Capital’s new owners, but rather, there had been signs of some hostility. The latter could explain why some longstanding shareholders of CRH had refused to sell out, despite an expressed bid to increase Asia Capital shareholding in CRH to not less than 60%.
However, Asia Capital had picked CRH to tap its highly proven and skilled management expertise, and to either consolidate or maximize synergies with the Group’s Hire-Purchase arm Asia Asset Ltd. CRH owns 66% stake in the listed Capital Reach Leasing. The latter saw active trading recently, with one of its Directors, N. Wijekoon, selling 33,000 shares, whilst he also bought around 3,000 shares back.