Carson Cumberbatch Group enters deal to sell private equity investment arm

Guardian Capital Partners PLC (GCP) and its immediate parent Ceylon Guardian Investment Trust PLC (CGIT) — units of Carson Cumberbatch Group — yesterday said they had entered into a share sale and purchase agreement (SSPA) with Gazelle Asset Management Pte Ltd, for the sale of 21.6 million shares or an 84 percent stake held by CGIT in GCP to Gazelle. 

GCP is a specialised private equity company. Gazelle is an asset management company incorporated in Singapore in 2010 and is unrelated to Carson Cumberbatch Group of Bukit Darah PLC. 

A stock market filling said the purchase consideration per share would be determined based on the net asset value of the company, as at a date mutually agreed by the parties, prior to the transaction plus a premium of Rs.40 million.

As at June 30, 2020, GCP’s net assets per share stood at Rs.28.11, up from Rs.27.45 a year ago.

The GCP share closed at Rs.30.10 yesterday, down 90 cents or 2.9 percent. For the financial year ended March 31, 2020 (FY19/20), GCP reported a net loss of Rs.13 million. The company’s total assets stood at Rs.687.7 million. 

Meanwhile, yesterday’s stock market filing said the transaction is subject to certain conditions precedent contained in the SSPA. 

The company will call an Extra Ordinary General meeting to obtain the shareholder approval for the deal. NDBIB acted as the sole financial advisor to the transaction.