Business

Ceylon Hotels divests stake in Handuvaru Ocean Holidays

  • Enters into sale and purchase agreement for $ 4.5 m 

BY Shenal Fernando

Ceylon Hotels Corporation PLC (CHOT) has by corporate disclosure dated 12 October announced that its subsidiary Ceylon Hotels Maldives (Pvt.) Ltd. (CHML) has entered into a conditional sale and purchase agreement to sell its stake in Handuvaru Ocean Holidays (Pvt.) Ltd. for $ 4.5 million.

Under the conditional sale and purchase agreement, CHML agreed to transfer its 50% stake in Handuvaru Ocean Holidays to China Travel International Investment Hong Kong Ltd. The conclusion of the sale and the eventual transfer of CHML’s stake is subject to due diligence and satisfaction of certain conditions precedent.

According to a 2018 corporate disclosure by CHOT, Handuvaru Ocean Holidays was a joint venture between CHML and Zhen Hua Engineering Company, a group company of China Harbour Engineering Co. Ltd., which is the current developer of the Colombo Port City Project.

Handuvaru Ocean Holidays, which is incorporated in Malaysia, owns the leasing rights of Anbara Island in Vaavu Atoll in the Maldives. Under the aforesaid joint venture, CHML and Zhen Hua Engineering Company agreed to develop an 85-100-room resort on Ambara Island, involving an approximated investment of $ 50 million.
CHML is a fully owned subsidiary of United Hotels Co. Ltd. and CHOT owns 67.5% of United Hotels Co. Ltd.