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Uncertainty looms around Selendiva IPO

24 Oct 2021

  • No firm decision on company listing
  • ‘Receiving inquiries’ but yet to receive investments
    By The Sunday Morning Business Desk Selendiva Leisure, a widely criticised state-owned property development entity that was to be listed in the Colombo Stock Exchange (CSE) in July, was facing uncertainty, as none of the authorities had taken a firm decision on making the necessary arrangements to announce an initial public offering (IPO), The Sunday Morning Business learns. Speaking to us on Friday (22), Selendiva Investments Ltd. Chief Executive Officer (CEO) Shamahil Mohideen stated that despite officials currently working towards listing the company in the CSE, the date of announcement was not finalised as of now. The investment structure of Selendiva Investments was based on Singapore’s Temasek investment model, where 49% of the company’s shares were expected to be listed in the CSE for private investments. In March 2020, the Cabinet of Ministers approved the proposed investment facilitation structure for Selendiva Investments Ltd., allowing the firm to set up three investment portfolios under the public-private partnership (PPP) model as a measure to better manage state assets. The Treasury holds full ownership of the company, and state-owned Canwill Holdings (Pvt.) Ltd. (which owns Hilton Colombo), Hotel Developers (Lanka) Ltd., and Grand Oriental Hotel were vested with Selendiva Investments. An investment facilitation model based on a PPP had been planned by Selendiva Investments with a view to facilitate the identified state-owned institutions and investments. Under this, three investment portfolios were identified: The Heritage Square in Colombo Fort, real estate development, and the state-owned hospitality sector. Speaking to us in July, Mohideen said the IPO of Selendiva would be announced by the end of that month. Meanwhile, senior economist and Samagi Jana Balawegaya (SJB) parliamentarian Dr. Harsha de Silva, during a parliamentary session in September, disclosed that no investors had come forward to invest in Selendiva Leisure. Commenting on this, Mohideen denied Dr. de Silva’s statement, and stated that Selendiva Leisure had been “receiving inquiries” from potential investors. “We have not finalised any investors as of now,” Mohideen responded. Moreover, the fundamental rights (FR) petition filed against Selendiva Investments by Professionals’ National Front of Sri Lanka (PNF) Secretary Kapila Renuka Perera was taken up by the Supreme Court on 24 September via Zoom. However, the case was postponed to 29 November, as the legal representative for the petitioner sought the court’s permission to file an amended petition in line with the changes of the duties and functions of the Cabinet of Ministers. Through the petition, the petitioner requested an order to be made preventing the Ministry of Finance Secretary from handing over or leasing out any state-owned property to Selendiva Investments or Selendiva Leisure. The petitioner also feared that it would cause irreparable harm to the country’s cultural heritage, as some of the properties to be vested with Selendiva Investments Ltd. were said to be historic and architecturally valuable buildings that are to be preserved as per the City of Colombo Development Plan 1999. “If the cabinet decision is executed, the petitioner and the citizens of this country will lose access to important historical, archaeological, and architecturally valuable sites located in the aforementioned territories,” the petitioner stated


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