Apollo shares on hold?

by Jayantha Sri Nissanka

Billionaire businessman Harry Jayawardane's move to purchase shares at Apollo Hospital has been put on hold following a complaint made against him by Apollo Hospital Chairman Dr. Prathap C. Redi.

Enterprise Development Minister Rohitha Bogollagama said that under the statute of the BOI, if such a complaint was received, the BOI could stop approval to grant BOI status to such purchases.

"Dr. Redi has stated that a plot had been hatched to oust him as Chairman. Therefore, we have no option but to deal with regulations in order to protect the interest of foreign investors. If not, this incident could hamper future BOI investments", Minister said.

When asked why the BOI should sanction share purchases of a Public quoted company, the Minister explained that the Apollo project was unique as it started with the state of the art health care equipment along with well trained staff as a specialty hospital in Sri Lanka adding another hospital to 24 Apollo hospitals in India.

"If it is not serving the original purpose, we can not continue to extend BOI facilities", the Minister warned.

The hospital started as a specialty hospital on a Government land and the Government has a stake in the investment. The Bank of Ceylon has 16% stake and the Insurance Corporation holds (before privatisation) about 30% shares on behalf of the Sri Lankan Government.

"If someone has the money to purchase the remaining shares of the Apollo, why can't he start a new Hospital", the Minister asked.