Kotagala Plantations divests 31.15% stake in Imperial Hotels for Rs. 219.2 m

Thursday, 12 February 2026 03:07 - - {{hitsCtrl.values.hits}}

4.5 m shares sold under internal Group restructuring
Transaction classified as Related Party deal under Colombo Stock Exchange rules
Consideration to be settled within one year
Aggregate Related Party dealings for FY26 at Rs. 374-397 m

Kotagala Plantations PLC has divested its 31.15% stake in Imperial Hotels Ltd., to Consolidated Tea Plantations Ltd., (CTPL) for a consideration of Rs. 219.195 million, as part of a restructuring within its ultimate parent, The Colombo Fort Land & Building Group.

The company said its Board had resolved to sell 4.5 million shares in Imperial Hotels Ltd., representing 31.15%, to CTPL.

The transaction was effected following the execution of a Share Sale and Purchase Agreement on 6 February. The consideration is to be settled within one year from the date of execution, in accordance with the terms of the agreement.

Kotagala Plantations said the sale constitutes a Related Party Transaction as defined by the Sri Lanka Accounting Standards. The company’s Related Party Transactions Review Committee has determined that the transaction was carried out on normal commercial terms and is not prejudicial to the interests of the company and its minority shareholders.

The Committee has not obtained an opinion from an independent expert prior to forming its view on the transaction.

The aggregate value of all Related Party Transactions between the company and CTPL for the financial period 2025/2026 amounts to Rs. 397 million (unaudited), including the above transaction. The overall aggregate value of all non-recurrent Related Party Transactions of the company for the same financial period amounts to Rs. 374 million (unaudited), also including the transaction.