Cornel Perera says Hilton takeover not the solution, selling via bourse is

Promoter and former Chairman of Colombo Hilton-owning company Hotel Developers Lanka Ltd. Cornel Perera yesterday opined that taking over under the upcoming Bill was not the solution but suggested selling it via the Colombo Stock Exchange instead.

Perera also said that there was no question of underperformance at Hotel Developers as it has been making operational profit though the bottom line had been impacted due to debt servicing and other issues. He also said that it was with earnings from the company that the Rs. 6 billion was repaid to Japanese parties.

“If Hotel Developers is classified as underperforming, then it must be emphasised that for the past 17 years the enterprise and the Board was under the Government’s control,” Perera added.

Perera owns a 56% stake which is with the Government whilst Hotel Developers currently has seven cases pending. The venture is also saddled with Rs. 10 billion in retained losses and Rs. 12 billion in outstanding debt to the Government. The land on which Colombo Hilton is built is also now vested with the State.

Company analysts had expressed that the upcoming takeover or Expropriation Bill was the best way out of the morass for Hotel Developers, which incidentally is the sole underperforming State enterprise listed in the new legislation for acquisition by the Government.