Representatives from both Hayleys and Jetwing have requested meetings with the Attorney General (AG)’s Department to discuss the Jetwing-Chemanex share transaction and the ‘acting in concert’ issue, according to an informed source.
Jetwing’s acquisition in late March of a 7% stake in Lighthouse Hotel saw competitive bids from Hayleys, while a 4% stake acquired by the De Zoysa family-owned Associated Electrical Company (believed to be a ‘friendly’ party of Jetwing) in the hotel sometime ago have created speculation of a hostile battle for the Lighthouse Hotel which Hayleys and Jetwing own together.
"Both parties want to meet AG's department officials regarding this matter and the Securities and Exchange Commission (SEC) which wrote to AG for an opinion is also deliberating this matter amongst themselves,” the source told The Sunday Times FT. Udaya Sri Kariyawasam, Chairman SEC told The Sunday Times FT that SEC officials met AG's Department officials on Monday but did not say what transpired.
Hayleys and Jetwing have been acting in concert for more than 15 years pertaining to Lighthouse Hotel and the two control more than 51% together in this hotel.
Hayleys and Jetwing made a declaration to the SEC five years ago saying the two entities are acting in conjunction to make further purchases on Lighthouse.
Analysts said there have been some tensions in the relationship between Hayleys and Jetwing in general as the Hayleys board during the last few months has decided that the longstanding relationship between the two entities should be changed.
“Hayleys had so far been a passive investor and let Jetwing manage the hotels.
They felt that Hayleys wanted greater involvement and a greater stake in the properties. They felt that this way there will be greater control,” an analyst said.
He said as Hayleys wanted greater control, some directors at Hayleys suggested buying more stakes in the hotel. |
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