The sale of all assets of the defunct Golden Key Credit Card Company including Ceysands Hotel in Aluthgama has been suspended pending the Supreme Court order on modalities of the GK Special Purpose Vehicle Company Ltd (SPV). A member of the official committee assigned to dispose GK assets told the Business Times that transfer of shares of 20 Ceylinco Companies to the SPV is now underway and the sale of shares will begin after some time.
Softlogic Holdings Pvt Ltd made the highest offer of Rs. 925 million for Ceysands Hotel among 28 bidders and this was communicated to the Supreme Court, he said. Over 90% shares of this hotel are owned by Ceylinco companies and they have given their consent to sell it on a Supreme Court order, he added. The majority share holders of Ceysands Hotel are: Ceylinco Insurance Co Ltd (25.15%), The Finance Co Ltd (18.12%), S&L Investments(Pvt) Ltd(17.89%) Ceylinco Investment Co Ltd(6.95%) ,and Ceylinco Venture Capital Co Ltd (6.09%) . The total value of the hotel is estimated at Rs. 166.1 million, the court was informed. The major share holders of Ceysands Hotel have sent a letter agreeing to the sale on the condition that they receive their share of the sale proceeds, he said.
He noted that the exercise for the sale of the property was mainly carried out due the undertaking given by former Ceylinco chief Lalith Kotelawala, to sell Ceysands and provide Rs. 500 million to repay the GK depositors.
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