Japanese joint venture in Sri Lanka buys controlling stake of Sri Lanka’s Hunas Falls Hotels Plc
A stock exchange filing at the Colombo Stock Exchange has reportedly stated that a controlling stake of Sri Lanka’s Hunas Falls Hotels Plc, will be bought by a firm called Serenity Lake Leisure (Pvt) Ltd – a Japanese joint venture – for Rs. 182 per share.
The stock exchange filing has further stated that the hotel has been valued at Rs. 1.05 billion.
According to reports, the firm’s share has more than doubled from Rs. 79 on January 2 to Rs. 160.10 by Friday’s market close on take-over speculation.
The firm has reportedly made a stock exchange filing on January 4 that it was talking to a prospective buyer but the price was not disclosed.
A local media report stated that Serenity Lake Leisure (Pvt) Ltd will pay Rs. 696.4 million for a 66.2 percent stake of the hotel.
At Rs. 187 per share, Hunas Falls is now valued at Rs. 1.05 billion, compared to a market value of Rs. 444.4 million before the speculation began.
The firm has an asset base of Rs. 402 million.
Serenity Lake Leisure will have to make a mandatory offer to purchase all shares from the remaining shareholders, Hunas Falls Hotels parent Hayleys Plc has reportedly stated.
OSL take:
The continuous growth recorded by Sri Lanka’s tourism sector has made the country’s leisure and hospitality industry a hive of activities. There are many new development projects as well as expansions and diversifications in the leisure and hospitality sectors. The move to purchase controlling shares of Sri Lanka’s Hunas Falls Hotels Plc by a foreign joint venture company is yet another indication of the opportunities in the tourism sector. Foreign businesses/investors interested in doing business with Sri Lanka could explore business/investments opportunities in the country’s tourism sector.
| Article Code : | VBS/AT/16012019/Z_2 |