Galleon Founder Rajaratnam Buys Stake in Sri Lanka Broking Firm

By Pooja Thakur, June 13th 2009, Bloomberg.com

Raj Rajaratnam, the Sri Lankan-born founder of the $7 billion hedge fund Galleon Group, bought a 20 percent stake in broking firm Lanka Orix Securities Pvt.

Lanka Orix Leasing Company, which held 30 percent of the stock-broking firm, and Ishara Traders, which owned 40 percent, sold their stakes to Rajaratnam and other investors, said Tushan Wickramasighe, managing director at Lanka Orix Securities.

The other stakeholders include Rusi Captain, whose family is the largest shareholder in John Keells Holdings Plc, and Priyani Ratnagopal, a former director at Asia Securities Pvt., a local broker, Wickramasighe said. Captain will buy 20 percent, while Ratnagopal will acquire 10 percent. Wickramasighe will raise his stake to 50 percent from 30 percent, he said.

The sale will be completed after the firm receives the market regulator’s approval on June 25, Wickramasighe said.

Moksevi Prelis, the former head of DFCC Bank Ltd. will be appointed as chairman at the broking firm, Wickramasighe said.

To contact the reporter on this story: Pooja Thakur in Mumbai at pthakur@bloomberg.net.