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.
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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.

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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.

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"Hayleys is planning on investing in the hotel trade.
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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.

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The indices also rose.

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

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