S’pore giant buys Nahil’s Marriott Weligama Bay Resort & Spa for Rs. 10 b

Friday, 12 April 2019 00:02 - - {{hitsCtrl.values.hits}}

Singapore billionaire Ong Beng Seng

By Nisthar Cassim

Singapore-based specialist Hotel Properties Ltd. Group has announced the purchase of Lankan business tycoon Nahil Wijesuriya-owned Marriott Weligama Bay Resort & Spa for nearly Rs. 10 billion.

HPL Group subsidiary HPL Properties (West Asia) Pte Ltd., has entered into Share Purchase Agreements with East West Properties PLC, Asia 2000 Investment Inc., and The Monetary Board of The Central Bank of Sri Lanka for the proposed acquisition of the entire equity interest comprising 405,200,000 ordinary shares collectively owned by the Sellers in the capital of Weligama Hotel Properties Ltd. (WHPL).

The consideration for the proposed Share Purchase is approximately US $ 22.625 million, which is subject to net working capital adjustments to arrive at a final consideration. Listed entity HPL made this disclosure to the Singapore Stock Exchange yesterday and an announcement is expected today to the Colombo Stock Exchange.

The total transection value is US $ 57 million.

WHPL owns a 198-key 5-Star Resort known as the Marriott Weligama Bay Resort & Spa, situated at Weligama, Sri Lanka. The issued and paid up capital of WHPL is Rs. 1.93 billion comprising 405,200,000 ordinary shares.

Following the Proposed Share Purchase, the HPL Group through HPLPWA and its nominee will collectively own 100% of the equity of WHPL.

HPL said the proposed share purchase will be funded through the Group’s internal resources and/or bank financing, and is not expected to have any significant effect on the consolidated net tangible assets per share and net earnings per share of HPL Group based on the audited consolidated financial statements of the HPL Group for the year ended 31 December 2018.

HPL Group’s principal business activities are those of hotel ownership, management and operation, property development and investment holding.

Linked to the famous investor Ong Beng Seng, the HPL Group has interests in 32 hotels under prestigious hospitality brands such as Four Seasons, Hilton International, Como Hotels, InterContinental Hotels Group and Six Senses Hotels. In addition, the Group also manages its own portfolio of hotels under well-established brands such as Hard Rock Hotels and Concorde Hotels & Resorts.

The Group owns hotels, resorts and shopping galleries in 13 countries, namely, Singapore, Malaysia, Thailand, Indonesia, Maldives, Seychelles, Vanuatu, the United States of America, Bhutan, Tanzania, South Africa, Vietnam and United Kingdom.