Singapore listed Hotel Properties buys Tangalla Bay Hotels for Rs385mn

Aug 30, 2018 (LBO) – Singapore listed hotelier, Hotel Properties Limited (HPL) through an associate company has acquired 94.71 percent stake in Tangalla Bay Hotels in Sri Lanka for 385 million rupees.

West Asia Investments Pte Ltd, a newly incorporated associated company of HPL Properties (West Asia) Pte Ltd, which is, in turn, a wholly owned subsidiary of HPL, has acquired 9,285,757 ordinary shares of Tangalla Bay Hotels (Private) Limited (TBHPL).

Following the share acquisition, Tangalla Bay Hotels will become an associated company of the HPL Group.

The primary business of TBHPL is the operation and management of a hotel known as the Tangalla Bay Hotel, situated at pallikkudawa in Kadurupokuna Village in South Giruwa Pattu of the Hambantota District in the Southern Province.

The issued and paid-up capital of TBHPL is 177,861,380 rupees comprising 9,803,971 ordinary shares.

“The Share Acquisition will be funded through the Group’s internal resources and/or bank financing,” HPL said in a statement.

“It 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 2017.”

HPL said no director, controlling shareholder or substantial shareholder of the Company has an interest, direct or indirect, in the Share Acquisition, other than through their shareholding interest in HPL.