Shaw Wallace to sell land to Chinese state firm
View(s):Shaw Wallace and Hedges PLC is selling its prime block of 264.65 perches in the upmarket Kollupitiya area for Rs 1.8 billion to a hotel company whose subsidiary - CATIC, a state-owned Chinese defence supplier, once bid for the Galle Face Green property to set up a hotel-related project.
On Tuesday, Shaw Wallace announced plans to sell the property and said it would call an EGM seeking shareholders consent for the proposed sale. On Friday, three days later, it raised eyebrows by announcing a share-sale agreement with Avic International Hotels Lanka Ltd to dispose of the property. An EGM is yet to be held.
CATIC was set up by Avic International and both companies don’t have any previous experience in the hotel industry, according to their website details. Shaw Wallace said the buyer planned to develop the land to build a “mega hotel.” The CATIC bid for the Galle Face property didn’t work out despite paying a $76 million advance and that block was given to the ITC-Sheraton hotel group.
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