Nov 14, Colombo: Hotel Developers (Lanka ) PLC, the owners and operators of Hilton Hotel in Colombo informed the Colombo Stock Exchange (CSE) today that shares held by all the shareholders of the Company are now held by the Secretary to the Treasury, under the provisions of the Revival of Underperforming Enterprises and Underutilized Assets Act.
Following the enactment of the act, the assets of Hotel Developers (Lanka) PLC are now vested under the Government.
Company’s stock market filing however said that at this moment, it was not in a position to comment on the impact the said legislation would have on the Company and its shareholders and they were awaiting instructions from the Treasury Secretary.
The controversial bill widely recognized as expropriation bill was signed into law on Friday by parliamentary Speaker Chamal Rajapaksa.
The CSE plunged Monday to a lowest since Sep 15, 2009 due to the negative reaction to the takeover bill that would allow the government to takeover enterprises that may not perform up to the government’s expectations.