Sri Lanka's Hayleys Group Buys Ceylon Continental Hotel. Deal Boosts Market Sentiment

12th March 2010, www.sundaytimes.lk

Colombo's 5-star Ceylon Continental Hotel was sold on Friday morning to the Hayleys Group, boosting the indices and the investor confidence, analysts said.

Nahil Wijesuriya, Chairman Hotel Services PLC, the holding company of Continental sold 51% out of the 75% he owns through a Singaporean incorporated firm to Hayleys.

“We are left with 24% and we see a huge upside potential with the involvement of the Hayleys Group, in this hotel," Mr. Wijesuriya said, adding that 51% was sold for Rs 1.9 billion.

This transaction which was done through five negotiated deals before10 am saw more than 90 million shares trade at Rs 90, pushing the indices up.

The All Share increased by 0.33% to 3844.84 with Milanka seeing a 0.11% increase to 4432.8 at close while the turnover boosted to Rs 2.8 billion (DEC).