EPF delays hotel sale: East West

Saturday, 18 August 2018 00:00 - - {{hitsCtrl.values.hits}}

East West Properties PLC yesterday notified the Colombo Stock Exchange that the purchase of Weligala Hotel Properties has been delayed due to the Employers Provident Fund (EPF) not completing the valuation of their shares.

In March, East West announced it had signed a letter of intent with HPL Hotels and Resorts Ltd., Singapore, to sell a 72% stake in Weligama Hotel Properties Ltd.

“Further, to our previous announcements with regard to the above subject, the directors of East West Properties PLC wish to inform you that HPL and their associates have indicated that they are willing to buy only 100% ownership of Weligama Hotel Properties Ltd.,” East West said in the Stock Exchange filing.

“The delay in coming to a decision is the inability of the Employers Provident Fund (EPF), which owns 11.11% of shares, to come up with a valuation of their shares, despite all accounts and other details being available to EPF through their representative who is in the Board of Directors of Weligama Hotel Properties Ltd.”