Sri Lanka’s Hemas Holdings PLC (HHL) has divested its’ shareholding in Serendib Hotel PLC to LOLC Holdings PLC for Rs 791.7 million.
Eden Hotel Lanka PLC, a unit of LOLC Holdings’ investment arm, Browns Investment made the purchase of Serendib Hotels.
Serendib Hotels 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.
However, Hemas Holdings plans to continue to hold a few leisure sector assets including its investment in Anantara Peacehaven Tangalle Resort.
“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,” said Kasturi Chellaraja Wilson, Group CEO of Hemas Holdings PLC.
She noted that this transaction would be accretive to Hemas’ earnings per share and return on equity going forward.
Meanwhile, Browns Investments eyes to capture the post-COVID growth in the tourism business with this acquisition.
“The carefully executed investment strategy of Browns Investments with a focus in the leisure sector building the optimum footprint is well-positioned to capture the post-COVID growth in the tourism business,” Browns Investments Plc, Chairman Ishara Nanayakkara said.
Browns Investments already opreaters, The Eden Resort & Spa in Beruwala, The Paradise Resort & Spa in Dambulla, The Calm Resort & Spa in Passikudha, and Dickwella Resort & Spa and Sheraton Kosgoda Turtle Beach Resort managed by the Marriott Group.
It has also invested in several large-scale tourism projects in the Maldives.
Asia Securities Advisors (Pvt) Ltd acted as sole advisors to Hemas on this transaction