Sri Lanka pension fund to value hotel stake eyed by HPL Hotels
ECONOMYNEXT – Sri Lanka’s central bank said the pension fund it manages was getting a valuation done of its stake in a southern beach resort managed by Marriot ahead of its sale to Singapore’s hospitality management firm HPL Hotels & Resorts.
The Employees’ Provident Fund (EPF) is in talks about the sale of Marriott Weligama Bay Resort & Spa with Weligama Hotel Properties Limited (WHPL) which is owned by East West Properties PLC.
A statement said the EPF Department had got a letter from the Chairman of WHPL in June 2018 to sell its stake in the hotel situated in Weligama Bay, a popular tourist resort, to HPL Properties Group.
East West Properties had signed a letter of intent to sell 72% of the shares of Weligama Hotel Properties Ltd. to HPL Hotels and Resorts Pte Ltd Singapore.
“The Monetary Board of the Central Bank of Sri Lanka has decided to obtain a valuation of EPF’s equity stake in WHPL and the valuation process is currently in progress,” the statement said.
“A comprehensive valuation would be essential to determine the value of EPF’s stake in WHPL prior to divesting, in order to ensure an adequate return to the Fund to maximize the benefits for its members.”
(COLOMBO, 20 August, 2018)