- Restructuring tasks vested in different authorities
- SOE divestment process unit headed by Suresh Shah
Following the establishment of the State-Owned Enterprises (SOE) Restructuring Unit headed by Suresh Shah, operations of the much-maligned Selendiva Investments Ltd. are likely to be wound up, as the purpose of its existence has been rendered moot.
Speaking to The Sunday Morning Business, Selendiva Investments Ltd. Chief Executive Officer (CEO) Shamahil Mohideen confirmed that the company would no longer be handling the divestment of SOEs and that going forward the entire process would be handled by the Restructuring Unit headed by Shah established under the Ministry of Finance.
“The purpose of the incorporation of Selendiva Investments was restructuring and now the same task will be performed by the Restructuring Unit appointed by the Ministry of Finance. Selendiva will play no role,” he explained.
When asked about the future of Selendiva Investments, he declined to comment.
However, speaking to The Sunday Morning Business, Department of Public Enterprises Director General P.A.S. Athula Kumara confirmed that Selendiva Investments had been rendered redundant following the establishment of the Restructuring Unit and that approval had been sent to commence the process of winding-up operations.
The Sunday Morning Business reached out to Lion Brewery founding CEO Suresh Kumar Shah, who is also the current Chairman of the Ceylon Tobacco Company PLC (CTC). However, he declined to comment, stating he had no authority to divulge any details without authorisation.
The other members of the Restructuring Unit include Dr. Arittha Wikramanayake (veteran corporate and M&A lawyer), Murtaza Jafferjee (investment professional), Ajit Gunewardene (Founder and CEO of Bluestone Capital Private Ltd. and former Deputy Chairman of John Keells Holdings PLC), and Nissanka Weerasekera (venture capital and investment banking professional).
In July 2020, the Government established a new real estate and property development company named Selendiva Investments Ltd. with the intention of restructuring and transforming underperforming and underutilised State-owned assets to their full potential via appropriate Public-Private Partnership (PPP) investments.
In order to achieve Selendiva Investments’ objective of ensuring appropriate capital restructuring through the PPP model, a commercially-acceptable investment model was established via a Cabinet direction on 25 May 2021.
The investment model promoted the creation of cluster holding companies or Special Purpose Vehicles (SPVs) for the purpose of consolidating State-owned asset portfolios segregated into Hospitality and Leisure (Selendiva Hotels and Leisure), Heritage Square (Selendiva Heritage), and Real Estate Development (Selendiva Genesis).
The Selendiva Hotels and Leisure SPV was established thereafter and it was widely announced that the State-owned Colombo Hilton, Grand Oriental, and the Grand Hyatt in Colombo would be vested in the aforesaid SPV, which would thereafter be listed on the Colombo Stock Exchange.