Sri Lanka to divest Hyatt building

ECONOMYNEXT – Sri Lanka is to sell a 100 percent stake in Canwill Holdings (Pvt) Ltd, a state company which owns Colombo’s Grand Hyatt project.

The cabinet of ministers had decided to sell a 100 percent stake to a strategic investor. At the moment it has no workers and there are no plans to give shares to employees.

Canwill Holdings is 45.09 percent owned by Sri Lanka Insurance Corporation, 27.03 percent by Litro Gas Lanka Ltd, and 27.03 percent by Employees Provident Fund.

Canwill Holdings owns the Grand Hyatt project through Sinolanka Hotels and Spa (Pvt) Ltd. Canwill also has another subsidiary Helanco Hotels and Spa (Pvt) Ltd, which owns a site where a Hyatt Regency was expected to be built in Hambantota.

Helanco Hotels stock will be transferred to SLIC, Litro Gras and EPF in the proportion of the parent to separate the two projects. The Hambantota project will be divested separately.

A transaction advisor will be appointed to seek prospective investors and short list two to three investors who will bid for the 100 percent stake on the Colombo Stock Exchange.

The Hyatt hotel in Colombo is built on a troubled real estate project initiated by the failed Ceylinco group, which was expropriated by the Rajapaksa administration.

It is not clear whether buyers who had made advance payments for apartments had been compensated.  (Colombo/July03/2017)

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