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Tuesday, October 5, 2010

Sri Lanka Jetwing offers to buy out minority shareholders

Oct 05, 2010 (LBO) - Sri Lanka's Jetwing Leisure group will offer to buy out minority shareholders of listed Lighthouse Hotel at 60.50 rupees a share following an agreement reached with the securities regulator.

The regulator and the leisure group were in court over a Securities and Exchange Commission directive to make a mandatory offer.

Lighthouse Hotel said in a CSE filing that the court case was withdrawn and the firm has to make an offer within two weeks from October 04.

Unlisted Jetwing and Hayleys a listed group were jointly controlling the firm, but SEC directed the leisure firm to make a mandatory offer after it gained sole control of the hotel. Hayleys later sold out of the firm.

Lighthouse Hotel closed at 68.00 rupees Monday, much higher than the offer price of 60.50.

But analysts say the move re-inforces the principle under which the SEC made the directive where the a mandatory offer becomes applicable when sole control is gained by one party who were previously acting in concert.

source - www.lbo.lk