Cypriot fund buys 12% stake in Kandy Hotels from Gardiners

Cypriot long-term investment fund Progruss Investments Limited has purchased a 12 percent stake in Kandy Hotels Company (1938) PLC (KHC) from Gardiner family-controlled Ceylon Hotels Corporation PLC (CHC).

Progruss investments bought 40.43 million shares or 7 percent of the total shares of KHC for a consideration of Rs.8.40 per share from CHC last week. Simultaneously, Ceylon Hotel Holdings (Private) Limited, which is the holding company of CHC, sold 28.88 million shares or 5 percent of the total shares of KHC at the same price, to Progruss Investments as well.
The interim financial results for KHC this June had reported CHC owning 76.54 percent of the shares in KHC and Ceylon Hotel Holdings owning 9.78 percent.

For the quarter ended June 2016, KHC had posted a net profit of Rs.11.64 million, improving from Rs.1.57 million year-on-year (YoY). Its revenue had increased to Rs.123.96 million from Rs.109.35 million YoY.

KHC’s net assets per share had increased to Rs.10.84 in June from Rs.10.82 at the end of March 2016.