EPF working to value shares of Weligama Hotel Properties: CB

Tuesday, 21 August 2018 00:00 - - {{hitsCtrl.values.hits}}

The Central Bank yesterday said the Employees Provident Fund (EPF) has taken steps to evaluate the fund’s share value of Weligama Hotel Properties ahead of a potential sale to a Singaporean company.

The Employees’ Provident Fund (EPF) Department received a letter from the Chairman of Weligama Hotel Properties Ltd. (WHPL) in June 2018 to sell its stake to HPL Properties Group.

“Subsequently, the EPF Department held several discussions with WHPL in this regard. Accordingly, the Monetary Board of the Central Bank of Sri Lanka has decided to obtain a valuation of EPF’s equity stake in WHPL and the above valuation process is currently in progress,” the statement said.

A comprehensive valuation would be essential to determine the value of EPF’s stake in WHPL prior to divesting, in order to ensure an adequate return to the Fund to maximise the benefits for its members. Therefore, the EPF wishes to reiterate that it has taken necessary measures to obtain a valuation.

East West Properties PLC on Friday notified the Colombo Stock Exchange that the purchase of Weligama Hotel Properties has been delayed, due to the Employers Provident Fund (EPF) not completing 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.