Thursday Mar 26, 2026
Thursday Mar 26, 2026
Thursday, 26 March 2026 00:00 - - {{hitsCtrl.values.hits}}
Lanka Realty Investments PLC has announced a related party transaction to divest a 51% stake in its subsidiary Lanka Realty Developments Ltd., (LRD) to Lee Hedges PLC for a total consideration of Rs. 1,610,334,180.
The company said it will sell 57,204,262 ordinary shares in LRD, representing 51% of the issued shares, to Lee Hedges PLC, also a subsidiary within the Group. The transaction is subject to shareholder approval by Lee Hedges PLC via a special resolution in terms of the Colombo Stock Exchange Listing Rules.
Upon completion, a portion of the consideration amounting to not less than Rs. 800 million will be utilised to partly settle a related party loan of Rs. 1,453,500,000 obtained by the company from LRD.
The company said the transaction is intended to support group restructuring and improve alignment of assets within the Lanka Realty Investments PLC Group. It noted that Lee Hedges PLC has negotiated to acquire the remaining 49% stake in LRD held by Eighth Wonder, subject to the same condition precedent, which would enable LRD to become a wholly-owned subsidiary of Lee Hedges PLC upon completion of all such steps.
Lanka Realty Investments PLC said the disposal would also allow it to realise value on its investment in LRD, recognise an estimated disposal gain, and improve liquidity through the proceeds.
The aggregate value of related party transactions with LRD for the financial year 2025/26, excluding the above transactions, amounts to Rs. 2,099,914,458. The aggregate value of all non-recurrent related party transactions for the same period, including the proposed disposal, stands at Rs. 2,837,787,810.
The Related Party Transactions Review Committee stated that the transactions are on normal commercial terms and are not prejudicial to the interests of the company or its minority shareholders.
