Sri Lanka’s Browns Investments PLC to buy a 100 room Mauritius resort for US$ 12 million
Browns Investments PLC (BIL) of Sri Lanka has reportedly announced plans to buy a 100-room luxury resort in Mauritius for a sum of US$ 12 million.
The Company has been quoted as saying that the fully-owned subsidiary in UAE BI Leisure Holdings FZE has entered into a Share Sale and Purchase agreement to buy 100% of PL Resort Ltd. in Mauritius.
The purchase consideration of this acquisition is US$ 3.7 million after deducting the existing debt from the value, BIL has reportedly noted in a disclosure to the Colombo Stock Exchange (CSE).
According to reports, PL Resort owns a 100-room luxury beach resort which is managed and operated by the famed Raddison hotel management company under the Radisson Blu brand.
BI Leisure Holdings was incorporated with the objective of acquiring and developing a few leisure properties outside Sri Lanka.
BIL has interests in investments, leisure and travel, construction, manufacturing and trading, plantation, power, and real estate, local media reports state.
In December 2020, Eden Hotel Lanka PLC, a subsidiary of the Palm Garden Hotels PLC acquired 55.59% stake in Serendib Hotels PLC. With this acquisition Dolphin Hotels PLC, Hotel Sigiriya PLC, Serendib Leisure Management Ltd., Sanctuary Resorts Lanka Ltd., Frontier Capital Lanka Ltd. became subsidiaries of Palm Garden Hotels PLC, media reports have further noted.
The move by Sri Lanka’s Browns Investment to buy a luxury hotel in Mauritius is indicative of the strength and growth of the country’s private sector. Given the country’s business conducive environment and the continuous improvement in the ease of doing business environment in Sri Lanka have enabled local businesses to grow and expand even amidst the Covid 19 pandemic. Sri Lanka’s economy has shown great resilience to external and internal challenges through the years and is once again on the path to recovery after facing the impact of the global Covid 19 pandemic. Several key economic sectors in the country have shown a growth momentum despite challenges posed by the pandemic. It is in this backdrop that Sri Lanka is fast becoming a business hub in the South Asian region given its geographical positioning in the Indian ocean and the many trade agreements as well as trade concessions enjoyed by the country. Foreign businesses/investors could therefore confidently explore business/investment opportunities in Sri Lanka, especially focus on forming partnerships or joint ventures with local businesses.
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