Gardiner consolidates Hotels Corp holding into one

Wednesday, 31 August 2011 02:16 - - {{hitsCtrl.values.hits}}

Sanjeev Gardiner yesterday consolidated his and connected party holdings in Ceylon Hotels Corporation (CHOT) into one via an in-house deal.

Nearly 30 million shares of CHOT held by different entities was acquired by Curlew Ltd., at Rs. 35 each (Rs. 2.80 above the market) in a deal worth Rs. 1 billion increasing its stake in CHOT to 70% from 52% previously. Curlew is the investment arm of Gardiner, who is also the Chairman of the Galle Face Hotel. Sellers yesterday included Galle Face Hotel (18.1 million shares), Cyril Gardiner Ltd., (5.8 million shares), S.E.C. Gardiner and M. Gardiner (Joint Holding) (3.06 million shares) and Union Co Ltd., (1.9 million) shares.

Overall 31.84 million shares of CHOT traded for Rs. 1.1 billion before it closed at Rs. 34.50, up by Rs. 2.30 from its previous close. It hit an intra-day high of Rs. 40. Net asset per share of the Company is Rs. 35.