Business magnate Dhammika Perera returned to the market yesterday, acquiring control of East-West Properties PLC for Rs. 3.2 billion DailyFT reports. The company, founded by self-made billionaire and philanthropist Nahil Wijesuriya, was sold by the Wijesuriya family, who recently made headlines for donating Rs. 1 billion to build a cardiac treatment facility at Lady Ridgeway Children’s Hospital.
Dhammika purchased a 77.4% stake, amounting to 107 million shares, at Rs. 30.20 each through four off-market crossings under his name, as he has done in past acquisitions. Following the deal, East-West Properties’ share price surged by 22.3% or Rs. 5.80 to close at Rs. 31.80. Overall, 115.5 million shares changed hands via 1,726 trades, generating a turnover of Rs. 3.49 billion.
All major shareholders exited their holdings in this transaction, including Agnes Wijesuriya – Children’s and Elders’ Homes (36.17% stake), Anika Wijesuriya (21.55%), Vajira Wijesuriya (18.86%), and Nahil Wijesuriya himself (0.8%). However, Vijitha Wijesuriya retained his 7.85% stake.
Speaking to Daily FT, Dhammika said he sees significant future growth potential in East-West Properties and its portfolio of businesses. Analysts noted that the company has been underperforming relative to its potential, and the price paid for the controlling stake was approximately 1.5 times its book value, seen as an attractive deal.
East-West Properties primarily operates in real estate development, focusing on renting warehouse facilities in Peliyagoda and office space in Colombo 03. The group also has interests in media and operates a leased cement bagging plant. Recently, Dhammika entered the cement industry by purchasing a 51% stake in DHT Cement, which holds a 10% market share, for an investment of $20 million.
The acquisition has triggered a mandatory offer under the Securities and Exchange Commission’s Takeovers and Mergers Code, according to Bartleet Religare Securities, the buying broker. Lanka Securities acted as the selling broker.
As of 31 March 2025, East-West Properties had a public float of 22.6% with 2,310 shareholders. Before this acquisition, shares were trading at Rs. 26. During the first quarter of 2025, its highest price was Rs. 16 and lowest Rs. 11.20, both higher than in the December 2024 quarter, which saw a range of Rs. 7.20 to Rs. 8.90. The company’s net asset value per share stood at Rs. 19.29 as at end-March 2025.
East-West remains debt-free, with total assets worth Rs. 2.87 billion. For the financial year 2024/25, consolidated after-tax profit dropped by 23% to Rs. 72 million, while profit attributable to equity holders fell to Rs. 58.8 million from Rs. 80.5 million. Revenue rose by 15.5% to Rs. 157 million.
