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Friday, September 2, 2011

Dhammika ups Hayleys stake

By Indika Sakalasooriya

Influential investor Dammika Perera yesterday upped his shareholding in Hayleys PLC through a deal that is quite “complex” in nature, which market analysts described as ‘killing of two birds with a single stone’.

During the early morning hours, the market saw five crossings of Amaya Lesiure PLC (CONN) amounting to 24.5 million shares, each at Rs.107 amounting to Rs.2.6 billion.

The seller of the shares was Dhammika Perera and the buyers were Hayleys PLC and three of its group companies, namely Dean Foster Private Limited, Toyo Cushion Lanka Private Limited and Volanka Exports Limited.

Hayleys PLC in a disclosure just after the market hours confirmed that they bought 51 percent equity control of Amaya Leisure PLC.

According to sources, Dhammika is believed to be forming a hotels cluster under Hayleys PLC, where he serves as the Deputy Chairman and has control over 30 percent of the company through his personal and related party holdings.

Hotel Services PLC, the holding company of Ceylon Continental Hotel is also controlled by Hayleys PLC.

Almost simultaneous to the above mentioned transaction, another deal took place where Dhammika bought 7 million shares of Hayleys PLC in 7 crossings, each share at Rs.380 for Rs.2.66 billion, that in turn helped him to bring his personal shareholding in Hayleys to nearly 34 percent.

The major sellers of the shares to Dhammika were Dipped Products PLC and Dean Foster Private Limited which are subsidiaries of Hayleys PLC.

As per June 30, 2011, Dipped Products had 3,536,159 shares or 4.7 percent of Hayleys while Dean Foster had 2,922,413 shares or 3.9 percent.

“Through these two transactions, Dhammika was able to increase his stake in Hayleys as well as bring Amaya Leisure PLC under the hotel cluster he is believed to be planning under Hayleys,” a stock market analyst told Mirror Business.

Following the two transactions, Dhammika’s personal stake in Hayleys increased to 34 percent and his effective control to 39 percent with the 5.07 percent stake Royal Ceramics PLC he has in Hayleys.

Dhammika Perera was not available for comment.

source - www.dailymirror.lk