John Keells in early talks to take over Confifi Hotels

Sept 06 (LBO) – Diversified Sri Lankan conglomerate John Keells Holdings is in early talks to buy into the Confifi Hotel group, a top official said.

As part of our business strategy we look at various opportunities when they arise. In that context we have looked at this possibility of buying into the Confifi Group as well, Ajit Gunewardena, Deputy Chairman of John Keells Holdings, told LBO on Wednesday.

But it is in very preliminary stages and may not work as well. At any given time, John Keells has 20 projects in the pipeline and so this should be looked at in that context, he cautioned.

Confifi Hotel Holdings, a listed company that owns Palm Gardens, a beach resort, saw its share price spike on a possible JKH takeover, gaining 9.86 percent to close on Wednesday at 94.75 rupees a share.

John Keells Hotels, a JKH hotel holding company, through which an acquisition may take place, closed 0.75 rupees to eight rupees a share.

The Confifi group operates a chain of four beach resorts on the south west coast of Sri Lanka Eden Resort and Spa, Riverina Hotel, Club Palm Garden and Confifi Beach Hotel.

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