East West Properties PLC – the owners of Weligama Hotel Properties Ltd, that opened Weligama Bay Marriot Resort & Spa, in a filing to Colombo Stock Exchange (CSE) on Friday (20) said that financial and legal due dilligence of the company has not been finalized yet by the HPL Hotels & Resorts Pte Ltd.

The disclose further said that the company will inform the outcome of the due dilligence to the CSE once they complete the process. Earlier in March this year it was disclosed to CSE by East West Properties PLC that they had signed a letter of intent to sell the 72% stake it owns in its subsidiary - Weligama Hotel Properties Ltd to Singapore’s HPL Hotels & Resorts Pte. Ltd. However, the stock market disclosure filed by the company did not give any indication of the possible sale price. Businessman Nahil Wijesuriya and his children own about 85 percent of East West Properties.

However despite the diosclosure Executive Director of the company Vajira Wijesuriya and company’s Chairman N.P. Sooriyaarachchi after 8^th March 2018 had been continuously selling shares they own in the company at Rs. 23 and Rs. 19 levels. Further company’s Managing Director Vijitha Wijesuriya (Nahil Wijesuriya’s son) had resigned from the company from 20^th February 2018 as per disclosure on 26^th February 2018. Meanwhile market analysts highlight that some stock broking firms even before announcing the sale price of the Weligama Bay Marriot Resort & Spa had been forecasting a selling price to the property and had been recommending to Investors, which in turn had fuelled the share price to boost up driving investor sentiments; while Directors of the company was on a selling spree of shares as per the recent disclosures made.