The development had taken place at an ERI Board meeting last week, the Daily FT learns.
Among those moved out of the Board were Executive Directors Kosala Heengama and Scott Newsome and
Independent Directors G.S. Munasinghe and H.B. Dissanayake.
Despite the shakeup, Lalith Heengama has been retained as Chairman, until the Annual General Meeting. Eric Wikramanayake remains as CEO as well.
The change comes after Taprobane Holdings Plc (TAP) acquired a 29% stake in ERI for Rs. 1.6 billion in November in a deal which also involved ERI buying a 19% stake in Browns Investments Plc for Rs. 1.94 billion.
In January four nominees of TAP, Ajith Devasurendra (Non-Executive Director), Kamantha Amarasekera (Indep-endent Non-Executive Director), A.G. Weerasinghe (Non-Executive Director) and Ruwan Sugathadasa (Non-Executive Director), were appointed to the ERI Board.
Apart from TAP, other major shareholders of ERI include foreign fund Caledonian Securities Ltd. (26%) and Capital Trust Partners/Holdings (12.5%) and Lionhart and related parties (18%). A Director of Caledonian Tom Scanlan was appointed to the Board last week whilst Kelly Ehler remains on the Board.
ERI Group controls Dankotuwa Porcelain Plc, Ceylon Leather Products Plc, Colombo Pharmacy Plc, South Asia Textiles Ltd. and stock broking firm DNH Financial Ltd., in addition to interests in IT, real estate and investments.
ERI’s total assets amount to Rs. 13 billion. In the first nine months of FY13, ERI’s net profit attributable to equity holders amounted to Rs. 12.7 million, up from Rs. 11.4 million a year earlier. After-tax profit grew to Rs. 97.5 million, from Rs. 3.3 million in first nine months of FY12.