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Hemas eyes state-owned Lanka Hospitals Corporation

Hemas Hospitals

Dec 04, 2015 (LBO) – Sri Lanka’s diversified conglomerate Hemas Holdings has expressed interest in acquiring a stake of state-owned Lanka Hospitals Corporation.


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In a stock exchange filing the company said they noted the interest expressed by the Government in disposing of shares in ventures such as Lanka Hospitals Corporation PLC. “Hemas as a group has been exploring opportunities in the sectors that we operate in,” the company said.
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Hemas Holdings have been in the healthcare sector with Hemas Hospitals since the launch of their first hospital in Wattala in 2008.
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“We have therefore, expressed our interest in pursuing this opportunity once the government initiates the official process,” the company said.

As at the end of last year, 54.


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61 percent of Lanka Hospitals Corporation was owned by Sri Lanka Insurance Corporation and 28.66 percent was owned by Fortis Global Healthcare Holdings private limited. Lanka Hospitals Corporation posted a net profit of 510 million rupees for the last year compared to 677 million rupees recorded in the previous year. Basic earnings per share of Lanka Hospitals Corporation which commenced operations in 2002, under the name of Apollo Hospitals was 2.
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28 rupees in 2014. The Government is to exit partially or fully from investments in Lanka Hospitals, Colombo Hilton, Hyatt Residencies, Waters Edge, Grand Oriental Hotel, Ceylinco Hospital and Mobitel by listing such investments in the CSE during 2016.
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Mew
Mew
8 years ago

What short sighted decisions. Ranil’s fake social market economy is been ripped apart.

Ss
Ss
8 years ago
Reply to  Mew

Did your brain got ripped apart? There is nothing fake here
The government should NOT be having shares in private hospitals or developing hotels

Giabao
Giabao
8 years ago
Reply to  Ss

It is not the govt which owns this hospital. I think it is owned by an Insurance fund. So the Insurance fund must make the decision based on financial factors, not based on political factors. I sense great level of dealmaking going on with these things………… i wonder if policyholder have any right to make sure their rights are not violated by political deal making.

expat
expat
8 years ago
Reply to  Giabao

54% of LHL is owned bY SLIC, which in turn is owned by GOSL. So simple fact is GOSL owns LHL!!!

this is actually a windfall for GOSL , becoz it was Harry J during his time of owning SLIC who invested in LHL. when GOSL forcibly took over the SLIC, they got ownership of many companies that were owned thru the SLIC (Life & General Funds).

Sas
Sas
8 years ago
Reply to  Giabao

The Insurance fund is one of those private companies that MR forcefully nationalized.

The current governments plan is to get rid of the State-owned Companies they don’t think are necersary and then re-organize the rest into a fund similar to Singapore’s Temaesk Holdings.

Uditha Wijesinghe
Uditha Wijesinghe
8 years ago
Reply to  Mew

You should not be reading this website if you have such low knowledge of economics. That is a very far sighted decision. And they should sell the insurance corporation as well to increase productivity and competitive pricing so that Sri Lankan public benefits.

Abdul Hameed
Abdul Hameed
8 years ago

If Sri Lanka needs FDI and boost local economy do not sell Government owned enterprises to Hemas or any other local company. Sell them to foreign investors and companies.Reserves will increase , financial position of this country for debt repayment will increase , no need to print money. Dollar will come this way. Best decision to privatize local government owned companies and focus in core business in order to boost profits.

Shee Lankan
Shee Lankan
8 years ago

The Sri Lanka insurance corp holds majority stake in Lanka hospitals with Indias Fortis having 28% if I remember correct. The govt stake is effectively is the peoples share. Majority of Sri Lankans do not know to invest in equity in stock market. They do not understand the risks and rewards. Trading with knowledge and understanding gives inflation busting and consistent returns over the medium and long term. Sri Lankans should be educated about capital markets preferably in school curriculum from OL onwards

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