ECONOMYNEXT- Serenity Lake Leisure (Private) Limited will be taking over Sri Lanka’s Hunas Falls Hotels Plc, buying 66.2 perent of the firm for 696.4 million rupees, a filing at the Colombo Stock Exchange said.
Ending over a week of speculation, Hunas Falls’ parent Hayleys Group said it would sell the hotel, 45 minutes after the market closed on Friday.
An announcement was made on January 04 that Hayleys was considering a takeover offer from Serenity Lake Leisure and had opened the hotel’s books to the prospective buyer.
However, the Hunas Falls share started moving up in speculatory buying even before the official statement.
The firm’s share more than doubled from 79 rupees on January 02 to 160.10 rupees on Friday’s market close.
Serenity Lake Leisure will have to make a mandatory offer to purchase all shares from the remaining shareholders, Hayleys said.
At 187 rupees per share, Hunas Falls is now valued at 1.05 billion rupees, compared to a market value of 444.4 million rupees before the speculation began.
The firm has an asset base of 402 million rupees.
Hunas Falls had not made a profit in the first six months of the year. (Colombo/Jan11/2019)