Raju makes claim on Douglas Crossing licence - UPDATE

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Talking to TRW, Michael Beler has dismissed Peter Raju's claim that the two had entered an agreement to transfer the Douglas duty-free licence to Raju's company Peace Arch Duty Free Shop.

TRW EXCLUSIVE

The saga over the award of the licence to operate duty-free at Douglas Crossing in British Columbia, Canada has taken a fresh twist as failed bidder Peace Arch Duty Free Shop claimed it had made a binding agreement to purchase all shares in winning operator Douglas Crossing Duty Free, owned by Michael Beler. Peace Arch president Peter Raju insisted the two parties reached the agreement on June 15 at Beler's initiation, and called on Beler to transfer all issued and outstanding shares in Douglas Crossing Duty Free for $2.2m. Beler has denied the claims.

Raju told TRW that Beler had contacted him with the proposal after failing to reach a lease agreement with landowner Se-Mi-Ah-Mu Development Corporation. He said: ?On June 15 - the penultimate day of the three months the Canada Customs and Revenue Agency had granted Beler to reach a land deal ? his solicitors contacted mine and drafted an agreement whereby we would purchase all the shares in Douglas Crossing Duty Free, and take over the running of the store 180 days from opening. On that basis the landowners granted Beler a lease.?

Raju said the dispute would have to be resolved by British Columbia's Supreme Court. He added that by reneging on the deal with Peach Arch Duty Free, Beler had also jeopardised an agreement with the landowner to open the store by October 1.

Beler dismissed Raju's claims, and told TRW: ?An agreement was made for the benefit of all parties on June 15 under circumstances which no longer apply. Therefore, that agreement is no longer in effect. I have fulfilled all my obligations to the landlord and will continue to do so.?

See DFNI September 15 for more comment and analysis.