Lee Hedges revises payment terms for Rs. 3.16 b Lanka Realty acquisition

Wednesday, 24 June 2026 00:00 - - {{hitsCtrl.values.hits}}

Lee Hedges PLC has revised the payment structure for its previously approved acquisition of the entire issued share capital of Lanka Realty Developments Ltd. (LRD), a transaction valued at Rs. 3.16 billion.

In a disclosure to the Colombo Stock Exchange, the company said its Board approved new payment terms on 19 June in respect of the acquisition of 112.17 million ordinary shares of LRD from Lanka Realty Investments PLC (LRI) and Eighth Wonder. The transaction had previously been disclosed on 20 March and approved by shareholders via a special resolution on 28 April.

Under the revised arrangement, Lee Hedges will make an initial payment of Rs. 1.1 billion at or prior to execution of the share transfer, with the balance Rs. 2.06 billion payable within six months. The deferred amount will carry interest at the Average Weighted Prime Lending Rate plus 1.5% per annum until settlement in full.

The acquisition comprises the purchase of 57.2 million ordinary shares, representing 51% of LRD, from LRI for Rs. 1.61 billion and 54.96 million ordinary shares, representing the remaining 49%, from Eighth Wonder for Rs. 1.55 billion. Upon completion, Lee Hedges will own 100% of LRD.

The company said a Sale and Purchase Agreement reflecting the revised terms was entered into by Lee Hedges, LRI and Eighth Wonder on 19 June. Following execution of the agreement and receipt of the initial payment, the vendors transferred their shareholdings in LRD to Lee Hedges on the same date.

Lee Hedges further disclosed that the Board of LRI approved the variation of payment terms on 18 June, while the company’s Related Party Transactions Review Committee reviewed and recommended the revised arrangement.