Dec 15, 2020 (LBO) – Hemas Holdings PLC (HHL) has divested its’ shareholding in Serendib Hotel PLC to Eden Hotel Lanka PLC, a subsidiary of LOLC Holdings PLC for a total consideration of LKR 791.7 million.
Serendib Hotels PLC is the majority shareholder of Dolphin Hotels PLC, Hotel Sigiriya PLC, Serendib Leisure Management Ltd, Frontier Capital Lanka (Pvt) Ltd and Sanctuary Resorts Lanka (Pvt) Ltd.
HHL will continue to hold a few leisure sector assets, which includes its investment in Anantara Peacehaven Tangalle Resort.
The Group also recently reduced its exposure to its Travel and other Aviation Representation businesses, by selling a majority stake of these businesses to its senior management team.
“In line with the Group’s portfolio direction and focus on uplifting return on equity from the core segments, we have made a strategic decision to increase investments within our Consumer, Healthcare and Mobility Sectors. We are confident that Eden Hotel Lanka PLC, a part of the LOLC Group, a respected leader in the corporate and leisure sector, is a strong parent company for Serendib Hotels PLC. This divestiture will no doubt be in the interest of the growth of Serendib Hotels PLC, as well as its employees. This transaction will be accretive to Hemas’ earnings per share and return on equity going forward” said Kasturi Chellaraja Wilson, Group CEO of Hemas Holdings PLC.
She further added, “Despite the challenges we faced amidst the COVID-19 pandemic, all our core businesses have shown resilience during the first half, and we anticipate the momentum to continue. The Group has plans to expand and invest aggressively in the core sectors in the coming years.”
Asia Securities Advisors (Pvt) Ltd acted as sole advisors to Hemas on this transaction.