HHL sells shareholding in Serendib Hotel to Eden Hotel Lanka for Rs. 791.7 million

By Hiran H.Senewiratne 

In line with Hemas’ portfolio strategy of focusing on its core sectors –   consumer, healthcare and mobility – Hemas Holdings PLC  (HHL) divested itself of its shareholding in Serendib Hotel PLC to Eden Hotel Lanka PLC, a subsidiary of LOLC Holdings PLC, for a total consideration of Rs. 791.7 million, CSE sources said. 

Serendib Hotels PLC is the majority shareholder of Dolphin Hotels, Hotel Sigiriya, 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.

According to stock market analysts, Hemas sold  42.8 million shares at Rs. 14.20 each, which was 25 percent lower than the previous day’s price per share. Its shares started trading at Rs. 18.90 per share, however, this transaction occurred when its share price was at Rs. 14.20. Further, the company also sold 19.3 million non voting shares at the share price of Rs. 9.60, market analysts said.    

Amid those developments shares ended higher for a 15th straight session, buoyed by gains in consumer staples and healthcare stocks. However, due to slight profit taking the market dropped yesterday. All Share Price Index went down by 24.74 points and S and P SL20 rose by 26.12 points. The turnover stood at Rs. 2.53 billion with a single crossing. The crossing was reported in Dipped Products, which crossed 100,000 shares to the tune of Rs. 32 million, its shares traded at Rs. 320.

In the retail market top five companies that mainly contributed to the turnover were, Serendib Hotel Rs. 618 million (43.3 million shares traded), Browns Investments Rs. 261 million (70.5 million shares traded), Serendib Hotel (Non Voting) Rs. 191 million (19.8 million shares traded), Hemas Hotels Rs. 102.7 million (1.1 million shares traded) and Melstacorp Rs. 87 million (1.8 million shares traded). During the day  221 million share volumes changed hands in 19197 transactions.  

The CSE recorded foreign investments, on a net basis, while foreign loans to the government increased in October 2020. When considering both the primary market and the secondary market, the CSE recorded a net inflow of $ 21 million in October 2020. This inflow was a result of a large inflow of $ 50 million to the primary market while the secondary market recorded a net outflow of $ 29 million during the month. The Sri Lankan rupee recorded a marginal appreciation of 0.7% during October 2020, despite some volatility demonstrated in the middle of the month. Overall, the rupee has recorded a depreciation of 2.4% against the US dollar so far during the year up to December 14.