Sri Lankan Billionaire Nahil Wijesuriya’s family controlled East West Properties owned Weligama Hotel Properties Limited (WHPL) is being sold to Singapore's Hotel Properties Limited (HPL) founded by Singaporean billionaire businessman Dato' Ong Beng Seng for US $ 22.62 million according to an earlier announcement, and today’s (7^th May 2019) Colombo Stock Exchange (CSE) market opened with announcing the company’s highest ever dividend per share in the recent history adding awe for investors whose money is bleeding after Sri Lanka was hammered with ISIS attacks on 21^st April 2019.

Accordingly early before the regular trading hours of the CSE, East West Properties (EAST) announced that company will pay Rs. 8.50 per ordinary voting share totaling to over Rs. 1.17 billion for the 138,240,000 ordinary voting shares of the company. The disclosure added that all shareholders as at 16^th May 2019 upon closing trading hours, will be getting the dividend payment by 28^th May 2019. Company’s 31^st December 2018 financials outline that public holding of the company stands at 20.13 as at 31^st December 2018.

On 11th April 2019, Singapore Stock Exchange (SGX) listed Hotel Properties Ltd in a disclosure said that the Directors of Hotel Properties Limited wish to announce that its wholly owned subsidiary, HPL Properties (West Asia) Pte Ltd (“HPLPWA”), has entered into Share Purchase Agreements with East West Properties PLC, Asia 2000 Investment Inc and The Monetary Board of The Central Bank of Sri Lanka as the “Sellers” for the proposed acquisition of the entire equity interest comprising 405,200,000 ordinary shares collectively owned by the Sellers in the capital of Weligama Hotel Properties Limited (“WHPL”) to HPLPWA.

However the disclosure to SGX further added that the consideration for the proposed Share Purchase is approximately US $ 22,625,000/- or US $ 22.62 million, which is subject to net working capital adjustments to arrive at a final consideration. Meanwhile several media reports in Sri Lanka further highlighted that the final consideration for full deal price will be around US $ 58 million along with the working capital adjustments. 

On the other hand Sri Lankan Billionaire Nahil Wijesuriya owned East West Properties PLC (EAST) in a separate disclosure faxed to Colombo Stock Exchange (CSE) on 11th April 2019 (16:39 hours) but released to public by CSE on 12th April 2019 said that the Directors of the company has entered into a Share Purchase agreement with HPL Properties (West Asia) Pte Ltd for the sale of 71.82% stake amounting 291 million ordinary shares of WHPL which owns Weligama Bay Marriott Resort & Spa for a consideration of US $ 15,934,952 or US $ 15.93 million.

Meanwhile the latest annual report of East West Properties has valued the Land and Buildings of WHPL which owns Weligama Bay Marriott Resort & Spa for total of over Sri Lankan Rs. 5 billion whilst Weligama Hotel Properties Limited obtained US $ 23.344 million from Bank of Ceylon and US $ 1.371 million from Sampath Bank PLC for the part finance of the Marriott Resort & Spa Hotel project at Weligama. Weligama Hotel Properties Limited (WHPL) owns a 198-key 5-Star Resort known as the Marriott Weligama Bay Resort & Spa (managed by the international hotel chain Marriott), situated at Weligama, Sri Lanka. The issued and paid up capital of WHPL is Sri Lankan Rs. 1,931,801,000/- or Rs. 1.93 billion comprising 405,200,000 ordinary shares according to the disclosure made by HPL to Singapore Stock Exchnage (SGX).

- Reporting by Devendra Francis