Lee Hedges to scale down Colpetty Mills project
Lee Hedges Investment Ltd, a fully owned subsidiary of Lee Hedges controlled by property tycoon R. Vamadeva, will seek shareholder sanction to abandon the Rs. 2.8 billion 15-storey mixed development complex in Colombo 3 (‘Colpetty Mills’) and, later propose to scale down the same to construct it at a lesser cost, officials said.
This will be proposed at the Extraordinary General meeting (EGM) of the shareholders of Lee Hedges PLC to be held on April 27 in Colombo, an official told the Business Times. “We want to scale it down and build it at a lesser cost,” he said.
This came about after the company received letters from 11 shareholders, collectively holding 2,763,900 shares in the company requesting the company to purchase their shares in the company in view of their dissent to the proposal presented to the shareholders by the company at an earlier EGM for this Rs. 2.8 billion investment.
The company disclosure to shareholders on Monday said that next month’s EGM will seek shareholder approval whether or not to rescind the special resolution approving the proposed investment for a multi-storeyed residential serviced as well.
Lee Hedges was planning to build on the former Cashew Corporation premises of 53 perches which was taken on a 99 year old lease by the company.