The Shareholders of Shaw Wallace PLC have given their consent for the sale of 'Colpetty Mills' extending 264.65 perches for Rs.1.85 billion in an Extraordinary General Meeting (EGM) held on September 3, 2012.

The firm in a stock exchange filing said the execution of the sale agreement entered with the Avic International Hotels Lanka Limited was ratified and that any two directors of SHAW or one director and the Company Secretary can execute the transaction at an appropriate time.

Avic International Hotels Lanka Limited is a locally incorporated unit of Chinese state-owned aviation company CATIC (China National Aero Technology Import and Export Corporation).

It was earlier reported that Indian High Commission in Sri Lanka was eying this prime land and was ready to pay Rs.7 million a perch, to build a cultural centre.

The Sri Lankan High Commissioner, Prasad Kariyawasam had also been summoned and India’s displeasure over the deal had been made known to him, the Indian media reports stated.

SHAW expects to utilise the proceeding originating from the transaction for debt servicing and the development of its property development project 'Mayfair City' Stage I in the remaining section of the land in Colpetty.

The firm also said it expected to secure on a 99-year lease from the Urban Development Authority, a 52.9 perch land in front of the Colpetty property on the Galle Road side, which according to the company, would enable them to amalgamate both lands and go in for a meaningful development.