Sri Lanka John Keells in deal to buy three Confifi hotels

Chief Regulatory Officer at CSE Renuke Wijayawardhane presenting the listing certificate to Executive Chairperson at Renuka Hotels Shibani Thambiayah

Oct 04, 2007 (LBO) – Sri Lanka’s John Keells Holdings announced a take-over of three Confifi group hotels Thursday, paying for the deal with the stock of its leisure division. Meanwhile in the broader market, the All Share index closed up 0.45 percent at 2,589.7 points and the more liquid Milanka Index 0.31 percent at 3,514.1 points.

Market turnover was 141 million rupees in a day that saw 7.5 million shares changing hands.

Updated/corrected swap Riverina hotel in the Confifi group closed up 2.25 at 47.75 with 76,000 shares traded. Keells Hotels Limited (KHL) closed up one rupee at 9.25.

Riverina shareholders would be paid 5 KHL shares, Confifi Hotel Holdings which owns Palm Garden will be paid 11 shares and Eden 3 KHL shares for 5, Confifi and JKH said in a joint statement.

The acquisition would complement KHL’s existing portfolio of hotels and strengthen its presence in the southern coastal belt of Sri Lanka,” Keells Chairman Susantha Ratnayake said.

“The three Confifi hotels stand to benefit from KHL’s strong sales and marketing network and would reap operating synergies from being part of a larger group of hotels.

Existing