Financial Times

Hayleys to shed Lighthouse?

By Duruthu Edirimuni Chandrasekera

Due to the recent dispute with Jetwing Hotels pertaining to Lighthouse Hotel, Hayleys PLC is considering selling its 27.3% holding in the hotel which is jointly owned with Jetwing, Hayleys sources said.

On Thursday, Hayleys said it sold its stakes in boutique hotel Vil Uyana (50%) and Seashells Hotel (49%), which they owned with Jetwing. “Both these entities are loss-making and we do not have considerable control. Also Vil Uyana was bleeding (losses) from day one,” one source said, adding that if Hayleys gets the correct price, they will sell it (Lighthouse stake).

Jetwing and Hayleys together own six hotels –Tropical Villas, Jetwing Beach, Hunnas Falls, Lighthouse and a property at Nilaveli as well. Early this year, the nearly 18-year relationship between Jetwing and Hayleys came under some strain with Jetwing’s purchase of a 7 % stake in Lighthouse, which ultimately raised Jetwing’s stake to 34%. Jetwing has gone to courts in a dispute over the mandatory offer.

Hayleys on Thursday also announced that it has increased its shareholding in Hayleys MGT Knitting Mills as part of the strategic restructuring of its group.

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