Guardian Capital terminates JV agreement with foreign party due to ‘unfavourable investment’ climate

Guardian Capital Partners PLC (WAPO), a unit of the Carson Cumberbatch group, on Tuesday said it is terminating a joint venture (JV) agreement it had entered into with a foreign party due to the “current economic conditions and unfavourable investment environment” in the country. 

Guardian Capital had entered into a JV agreement with the US-registered Small Enterprises Assistance Funds (SEAF) in 2016, in order to form a JV company in an overseas jurisdiction, to manage and invest in private equity projects in Sri Lanka.

“WAPO and SEAF having given due consideration to the current economic conditions and unfavourable investment environment, have mutually terminated the JV agreement on August 14, 2018 on an amicable basis.

Accordingly, both parties are released from any liabilities or obligations arising from the JV agreement,” a stock market filing by Guardian 
Capital said.

At the time of the initial announcement of the JV in 2016, Guardian Capital said it would hold a 41.7 percent stake in the JV company, while SEAF would hold 58.3 percent.