The delay in taking an investment decision by the Employees’ Provident Fund (EPF) has delayed the sale of Weligama Bay Marriot Resort & Spa to a Singaporean firm, a stock market filing by East West Properties PLC said.
EPF is said to be having little over 11 percent stake in Weligama Hotel Properties Ltd, the owning company of Weligama Bay Marriot and a subsidiary of East West Properties.
East West Properties in March said it signed a letter of intent to sell the entire stake it owned in Weligama Hotel Properties Ltd to Singapore’s HPL Hotels & Resorts Pte. Ltd.
However, a disclosure by East West Properties on Friday said HPL and their associates had indicated they were willing to buy only 100 percent ownership of Weligama Hotel Properties Ltd.
“The delay was due to the inability of the Employees’ Provident Fund (EPF) which owns 11.11 percent of the shares to come up with a valuation of their shares, despite all accounts and other details being available to EPF through their representative who is on the board of directors of Weligama Hotel Properties Ltd,” the disclosure said.
More than 80 percent of the issued shares of East West Properties is owned by businessman Nahil Wijesuriya and his children.