May 26, 2010 (LBO) – Sri Lanka’s Confifi group hotels shares rose 46 percent to 318 rupees Wednesday with buyers expecting a battle for management control after Lanka Orix Leasing Company bought into the group. LOLC bought a 43.3 percent stake in Confifi Hotel Holdings, which in additional to owning a hotel also owns 21.8 percent of Eden Hotel Lanka and 26.74 percent of Riverina Hotels, LOLC said in stock exchange filing.
LOLC made the acquisition through a vehicle in which it has 70 percent.
Separately LOLC also bought another 20 percent in Riverina with the two deals valued at over 900 million rupees. Riverina also owns a 24.39 percent stake in Eden and 3.58 percent of Confifi Hotel Holdings.
“The LOLC having taken 43.3 percent of Confifi Hotels and 20 percent of Riverina Hotels is confident that we have established control in view of the cross holdings that exist with regard to Palm, Riverina and Eden,” Kithsiri Gunawardena, chief operating officer at LOLC group told LBO in a telephone interview.
“We are currently we in the process of going ahead with mandatory offer.”
Under Sri Lanka’s stock exchange rules, a shareholder that gets more than 30 percent of a company has to make an of