Singaporean company to buy over Sri Lanka’s Weligama Hotel Properties
Sri Lanka’s Weligama Hotel Properties Limited (WHPL) is reportedly being sold to Singapore’s Hotel Properties Limited (HPL) for US$ 22.63 million.
According to the Singaporean company, the Employees’ Provident Fund (EPF) managed by the Central Bank of Sri Lanka (CBSL) has approved and signed the deal.
WHPL owns a 198-room five-star hotel in Weligama, which is managed by the international hotel chain Marriott, local media reports state.
According to reports, HPL has disclosed on the Singapore Stock Exchange that its subsidiary HPL Properties (West Asia) Pte Ltd has entered into a purchase agreement with WHPL’s parent East West Properties Plc, Asia 2000 Investment Inc and the CBSL to purchase all 405.2 million issued shares of WHPL.
The EPF owns 45 million shares in WHPL, a 11.10 percent stake.
The EPF stake was bought for Rs. 405 million, or Rs. 9 a share in 2014, and its book value was the same as at 31 December 2018, according to EPF data.
Reports further state that the sale to HPL is at Rs. 9.77 a share, assuming a rupee to US dollar conversion rate of 175 (Rupee closed at 174.60/75 to the US dollar in the spot market last Thursday).
OSL take:
The takeover of Weligama Hotel Properties by Singapore’s Hotel Properties Limited is indicative of the growing investment opportunities in Sri Lanka’s tourism industry. The country’s tourism industry has been recording a continuous growth supported by increasing tourist arrivals to the island as well. The promotional campaigns launched by the tourism authorities have yielded results and Sri Lanka has been recognized as a must visit destination by renowned tourism publications. Therefore, Sri Lanka’s tourism industry is a hotspot for foreign investments.
| Article Code : | VBS/AT/17042019/Z_1 |