Hilton and Hyatt divestment transaction advisor selection process
Having recently completed the technical evaluation phase in selecting a Transaction Advisor (TA) for divestment of the Hilton and Hyatt Colombo Hotels, Sri Lanka has selected four local and foreign companies to undergo the next phase, the financial proposal process through which the TA’s service fees will be decided, said an official from the Ministry of Public Enterprise Development (MPED).
The four companies were hospitality consulting firm Hotelivate Pvt Ltd. Jointly applying with Sri Lanka’s Murtaza Jafferjee – led JB Securities (Pvt) Ltd, Jones Lang Lasalle(JLL), Property Consultants (India) Pvt Ltd and its Sri Lankan branch, global accounting and audit giant KPMG International, together with its Sri Lankan branch, and Lazard Asia Limited, jointly applying with Sri Lanka’s Hilmy Cader-led MTI Consulting. The financial proposal process will open 23 April.
“We have received Requests for Proposals(RFP) from 15 local and foreign companies to act as the Transaction Advisor(TA) in the scheduled divestment process. After their technical evaluation process, we have shortlisted four local and foreign companies for the financial proposal process to select the Transaction Advisor (TA).” He said.
The final section of the TA might be subject to the aggregate score of the shortlisted parties’ technical and financial evaluation processes, he asserted.
During the technical evaluation processes, the evaluation panel considered their past experiences related to handling similar matters and their staff strengths and skills.
He said there were no prior formal valuations about this divestment process, but the TA is expected to provide advice with regard to the divestment of the Government shares in the said companies.
According to the Ministry, 11 international and four local investment banking units and accounting companies submitted their RFPs to act as TA in the matter, namely: Fenek Limited, Dubai, UAE; PWc, Sinapore; Colliers International (Singapore) PTE Ltd Singapore; Mayor Brown JSM Singapore PTE, Singapore; Acuity Partners (Pvt) Ltd, Colombo; RFK Hotel Experts GMBH, Austria; Hotelivate Pvt Ltd, India,: Savills (Singapore) PTE Ltd; Lazard Asia Ltd. Singapore; Deloitte Touche Tohmatsu India, LLP, India; CIMB Investment Bank Berhad, Malaysia with association with NDB Investment Bank Sri Lanka; Capital Alliance Partner Ltd, Colombo; Jones Lang Lasalle Property Consultants (India), Pvt Ltd, India: YSP dvisos (Pvt) Ltd. Colombo; and KPMG, Colombo.
In early January, MPED called for proposals to act as advisor to seek suitable investors for the purchase iof the Government’s ownership of Hilton Colombo and Grand Hyatt Colombo.
The GoSL Budget Speech in 2016 identified two companies that come under the management of the MPED as the non-strategic enterprises, in which the divestment of Government ownership may be considered: Hotel Developers (Lanka) PLC. Which owns the Hilton Hotel in Colombo; and Canwill Holdings (Pvt) Ltd, owner of the Grad Hyatt Colombo Hotel construction project. GoSL intends to restructure the ownership of these two non-strategic assets and divest Government stakes in the two companies.