Hotels Corp. in deal with Forbes-list billionaire Binod’s Zinc Hospitality
Monday, 1 September 2014 00:17
Global giant to invest Rs. 250 m for 50% of subsidiary to boost rest houses
Ceylon Hotels Corporation PLC has entered into an agreement with Zinc Hospitality Lanka Ltd., which is part of Cinnovation/CG Group, a multi-dimensional conglomerate with a portfolio of complementary business comprising over 90 companies and 60 brands in the global market.
As per the deal, Hotels Corp has incorporated a joint venture Ceylon Holidays Holdings Ltd., which is currently a fully owned subsidiary. Zinc Hospitality Lanka will invest Rs. 250 million for 50% equity of the joint venture.
Ceylon Holidays Holdings is the holding company of CHC Rest Houses Ltd., and the two parties have agreed to jointly develop the properties under the CHC Rest Houses Ltd.
Sanjeev Gardiner linked Ceylon Hotels Holdings and related parties own around 75% stake in Ceylon Hotels Corp., whilst EPF holds 12% stake.
Singapore headquartered Cinnovation/CG Group is founded by Nepalese billionaire Binod K. Chaudhary and has interests in FMCG, cement, electronics, education, biotech, food, realty, telecom, energy and financial services apart from hospitality. With operations in 20 countries, it employs over 7,700 people.
In May last year the Nepal’s sole Forbes-list billionaire Chaudhary expressed strong confidence in post-war Sri Lanka’s future potential and he was walking the talk with a range of new investments, with a desire for speedy facilitation.
Binod already has considerable investments in Sri Lanka, including a major equity stake in owning company of Taj Samudra, Taj Exotica and Vivanta hotels in Sri Lanka (as well as Maldives) and two Jetwing resorts (Vil Uyana and Jetwing Sea) among others.