Dubai to buy into Galadari

Ravi Ladduwahetty

The United Arab Emirates- based Galadari family of business magnates, has entered into an agreement with the government of Dubai to sell 29 percent of its shareholdings in Colombo’s Galadari Hotel for a value of Rs 2.08 billion.

The company has a total issued capital of 180 million shares and with the 29 percent stake to be sold to the Dubai government amounting to 52.2 million shares, which will be at Rs 40 each, the value of the transaction would be Rs 2.08 billion.

The proceeds of the sale would be paid as a settlement and structuring of its finances in Dubai top local and international market sources told Daily News Business yesterday.

Top international market sources from Dubai said the first tranche of this transaction was expected to take place in the Colombo Stock Exchange (CSE) within a short period of time.

As a result of this proposed transfer of Galadari Hotel shares by the Galadari family the top shareholdings will be shared between Galadari family, government of Dubai and the Employees Provident Fund of Sri Lanka (EPF).

The Dubai government is expected to purchase these shares under a company named Unicorn. Transaction is expected to be carried out at a price of Rs 40 per share by TKS Securities, the newly formed stock brokering company owned by Malaysian politician Tiong King Sing.

TKS Securities CEO Hussain Ghani said it was premature and more details of the transaction will be disclosed later.

The Galadari Hotel incorporated in 1980 and listed on the Main Board of the Colombo Stock Exchange, has 428 rooms in 17 floors and situated on a three acre block of land.

The government of Dubai being a shareholder of Sri Lanka’s Galadari Hotel was the latest milestone of the Galadari brothers which came in 2008.