Sierra Cables ventures into tourism

Joining the growing band wagon of those who diversify to tap the post-war rebound in tourism, Sierra Cables Plc yesterday said it was venturing into the leisure sector.

Its foray is by way of a Rs. 250 million investment in two hotel projects under a joint venture agreement with Free Lanka Capital Holdings.

Free Lanka Capital Holdings is a group that has business interest in plantations, hydro power, leisure and property development sectors.

Following the announcement yesterday Sierra Cables saw its stock price touch an all time high of Rs. 6.20 before closing at Rs. 5.90, up by 30 cents with 24.3 million shares traded.

In October LOLC Group together with Browns Investments acquired 20% in Sierra Holdings which owns 60% stake in Sierra Construction as well as 58% stake in Sierra Cables. In a deal worth Rs. 1.6 billion LOLC-Browns also bought a further direct stake of 20% in Sierra Construction.