Serenity Lake Leisure (Private) Limited will be taking over Sri Lanka`s Hunas Falls Hotels Plc, buying 66.2 perent of the firm for 696.4 million rupees, a filing at the Colombo Stock Exchange said.
Ending over a week of speculation, Hunas Falls` parent Hayleys Group said it would sell the hotel, 45 minutes after the market closed on Friday.
An announcement was made on January 04 that Hayleys was considering a takeover offer from Serenity Lake Leisure and had opened the hotel`s books to the prospective buyer.
However, the Hunas Falls share started moving up in speculatory buying even before the official statement.
The firm`s share more than doubled from 79 rupees on January 02 to 160.10 rupees on Friday`s market close.
Serenity Lake Leisure will have to make a mandatory offer to purchase all shares from the remaining shareholders, Hayleys said.
At 187 rupees per share, Hunas Falls is now valued at 1.05 billion rupees, compared to a market value of 444.4 million rupees before the speculation began.
The firm has an asset base of 402 million rupees.
Hunas Falls had not made a profit in the first six months of the year.
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