Hemas Holdings may jointly develop hotels with Thailand’s Minor International

June 22, 2006 (LBO) – Sri Lanka's Hemas Holdings Ltd may partner with Thailand's largest quoted resort and fast food operator Minor International Public Company Ltd., to develop hotels here. Minor International also manages properties in the Middle East and runs hotels in Thailand under international brands names like Anantara and J W Marriot. Both firms have signed a memorandum of understanding, which would also involve Hemas unit Serendib Hotels, Hemas said in a statement Thursday.

Hemas, which owns over 50 percent in Serendib Hotels, disclosed plans on Tuesday to covert some 600,000 debentures they own in the hotel into voting stock on July 1, at a price of 34.50 rupees each.

"We will make the mandatory offer to remaining Serendib shareholders once the Securities & Exchange Commission gets back to us with an agreed offer price," Hemas CEO Husein Esufally told LBO on Wednesday.

He said the group had plans to upgrade the Serendib properties.

The family controlled Hemas' interest spans health and personal care products, power generation, leisure and transport.

The leisure unit, however, has been slow to recover post-tsunami as fears of Sri Lanka slipping back to war