Sri Lanka Hayleys buys 51-pct stake in Hotel Ceylon Continental

Mar 12, 2010 (LBO) – Sri Lanka’s Hayleys group said it bought a 51 percent stake in Ceylon Continental Hotel Friday for 1.8 billion rupees.

Hayleys said in a stock exchange filing that under stock market rules it has to make a mandatory offer to other shareholders of Hotel Services.

Updated The stake was owned by the Nahil Wijesuriya-controlled Hotel Services (Ceylon).

Hayleys Group Director Nimal Perera said the transaction in which the firm bought 90 million shares at 21 rupees a share took place in the early hours of trading on the Colombo bourse.

“Hayleys is planning on investing in the hotel trade. That’s why we did this transaction,” said Perera.

The transaction boosted turnover at the stock exchange to over two billion rupees with, brokers said. The indices also rose.

Dhammika Perera, chief of the investment promotion agency, is a main share holder of the Hayleys group.