May 25, 2010 (LBO) – Lanka Orix Leasing Company (LOLC) has bought into a hotel group through a 70 percent joint venture it has with another firm, Browns Investments, in two deals valued at over 900 million rupees. LOLC had bought 3.1 million shares or 43.3 percent in Confifi Hotel Holdings at 210 rupees in a deal worth 655 million rupees, through LOLC Securities, a firm in which Browns Investments also has a 30 percent stake, the firm said in a stock exchange filing.
Confifi Hotel Holdings also owns a 21.8 percent of Eden Hotel Lanka and 24.06 percent of Riverina Hotels, both listed firms.
In a separate deal LOLC had bought another 20 percent stake in Riverina Hotels, LOLC said.
Brokers value the deal for 2.6 million shares at 110 rupees each at 286 million brokers.
Riverina Hotels assets include 24.4 percent of Eden Hotel Lanka and 3.6 percent of Riverina Hotels, the filing said.
Under Colombo Stock Exchange rules LOLC is expected to make an offer to buyout remaining shareholders of Confifi Hotels at 210 rupees. As at end December 2009, the three largest shareholders of Confifi Hotels were Confifi Managements Services Limited with almost 30 percent, National Equity Fund, 10 percent, NAMAL Ac