Lee Hedges to acquire full stake in Lanka Realty Developments for Rs. 3.16 billion
Daily FT: Lee Hedges PLC has announced plans to acquire the entire issued share capital of Lanka Realty Developments Ltd. (LRD) through a two-part transaction valued at over Rs. 3.16 billion.
Its Board of Directors, at a meeting held on 19 March 2026, resolved to purchase 57,204,262 ordinary shares held by Lanka Realty Investments PLC (LRI), representing 51% of LRD, for a total consideration of Rs. 1,610,334,180.
The company will also acquire the remaining 49% stake in LRD held by Eighth Wonder for Rs. 1,547,183,820.
Upon completion of both transactions, Lee Hedges PLC will own 100% of the issued shares of Lanka Realty Developments.
The company noted that the proposed acquisition is subject to shareholder approval by way of a special resolution. It also said the Related Party Transactions Review Committee has reviewed and approved the transaction, classifying it as a related-party transaction.
Lee Hedges added that an additional announcement will be made upon completion of the transaction.
OSL take:
The ongoing economic activities and overall economic expansion in the country indicate a growth in Sri Lanka’s house and property market indicating an increasing business potential in the real estate development industry. The ongoing conflict in the Middle East and with foreign businesses/investors in the region looking at alternative destinations to move their business operations, Sri Lanka has presented the ideal business destination as the gateway to the Asian region. Sri Lanka’s strategic positioning in the Indian Ocean, the many trade agreements as well as trade concessions enjoyed with many foreign countries and the continuously improving business conducive environment in the country have all added to boost Sri Lanka as an emerging business destination in the region. Given the steady growth recorded by all key economic sectors in the country and the increasing land value in the country, Sri Lanka’s real estate development industry presents many lucrative business/investment opportunities for foreign businesses/investors on the lookout for such in the South Asian region. These foreign businesses could also look at entering and engaging in Sri Lanka through collaborations with Sri Lankan businesses that are already on a growth and expansion path.
| Article Code : | VBS/AT/20260402/Z_1 |