Dhammika returns to market; buys Nahil-founded East West for Rs. 3.2 b

Wednesday, 9 July 2025 00:10 - - {{hitsCtrl.values.hits}}

Picks up 107 m shares at Rs. 30.20 each; majority of Wijesuriya family members sell out
Dhammika says acquisition was on future upside of both company and its businesses
East-West’s core business is in real estate development among others; post Dhammika takeover share price jumps by 22%

Dhammika Perera

Nahil Wijesuriya

Business leader Dhammika Perera yesterday returned to the market buying control of East-West Properties PLC-founded by tycoon turned philanthropist Nahil Wijesuriya for Rs. 3.2 billion.

Buying under his name as he once used to, Dhammika picked up 77.4% stake or 107 million shares of East West at Rs. 30.20 each via four crossings. The acquisition by Dhammika saw the share price of East West jump by 22.3% or Rs. 5.80 to close at Rs. 31.80. Overall, East West Properties saw 115.477 million of its shares change hands via 1,726 trades for Rs. 3.488 billion.

All major shareholders have sold out to Dhammika. Agnes Wijesuriya – Children’s and Elders’ Homes (50 million shares or 36.17%), Anika Wijesuriya (21.55%) and Vajira Wijesuriya (18.86%) and Nahil Wijesuriya (0.8%). One of his sons – Vijitha, hadn’t sold his 7.85% stake.

Dhammika told the Daily FT that he acquired East West Properties on the future upside of both the company and its businesses.

Company analysts said that East-West has been under-performing given its potential. The price paid by Dhammika for 77% stake appears attractive given the fact that it was around 1.5 times the book value.

East-West’s core business is in real estate development, with its main focus on the rental of its warehousing complex in Peliyagoda and office space rental in Colombo 03. Together with its real estate investments, East also has an interest in media. It also has a cement bagging plant which is on lease. Dhammika few months ago entered the cement market by acquiring 51% stake in DHT Cement (which holds 10% market share) with a $ 20 million investment.

The acquisition has triggered the SEC’s Takeovers and Mergers Code and a mandatory offer is due, according to Bartleet Religare Securities the buying broker for Dhammika. The selling broker was Lanka Securities.

The public float of East-West Properties as at 31 March 2025 was 22.6% held by 2,310 shareholders. Prior to yesterday’s acquisition, East-West Properties shares were trading at Rs. 26. In the 1Q of 2025, the highest price was Rs. 16 and the lowest was Rs. 11.20, both higher in comparison to Rs. 8.90 and Rs. 7.20 in the December 2024 quarter. Net assets value per share as at 31 March 2025 was Rs. 19.29.

Debt-free East-West Properties’ total assets were Rs. 2.87 billion as at 31 March 2025. For FY25, its consolidated after-tax profit was Rs. 72 million, down by 23% from the previous year. Profit attributable to equity holders of the parent was Rs. 58.8 million, down from Rs. 80.5 million. Turnover grew by 15.5% to Rs. 157 million in FY25.

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