- BackstageTop contributor
- Posts : 3803
Join date : 2014-02-24
Browns to sell 5 hotels
Browns to sell 5 hotels
Browns Investments, controlled by the LOLC Group, plans to sell five of its hotels – The Eden Resort and Spa in Beruwala, Dickwella Resorts, The Paradise Resort & Spa in Dambulla, The Calm Resort and Spa in Pasikudah and Kosgoda Turtle Bay (still being built), informed sources said.
The share price surge at Eden during the past two months was owing to the internal restructuring at Eden where Browns sought to bring Paradise and Dickwella shares under this company. They did this internal restructure to ease the potential sale, the sources told the Business Times.
Eden’s share price, which was at Rs. 10 in March, rose to Rs. 28 this week with stockbrokers anticipating that something was ‘up’. Browns will be retaining its ‘big’ hotel Riverina, the sources added. “They will concentrate on promoting that,” a source added.
He said that Browns is eyeing both local and foreign buyers. The four hotels in operation are generating moderate results despite the challenging environment in which they operate, he said adding that in comparison to the previous year higher profits are expected in 2017/18. (DEC)
- slstockVeteran
- Posts : 6216
Join date : 2014-06-12
Re: Browns to sell 5 hotels
Thanks for news paper article.
Seems the "news" cat was let loose speculatively to some , and that why EDEN ran from Rs 16 to 28
in 1 week ( already ran) !!
Hmm.. interestingly note EDEN did below recently...
https://cdn.cse.lk/cmt/uploadAnnounceFiles/6301495091293_533.pdf
- Ethical TraderTop contributor
- Posts : 5568
Join date : 2014-02-28
Re: Browns to sell 5 hotels
- CKActive Member
- Posts : 1393
Join date : 2015-11-01
Re: Browns to sell 5 hotels
- Ethical TraderTop contributor
- Posts : 5568
Join date : 2014-02-28
Re: Browns to sell 5 hotels
- slstockVeteran
- Posts : 6216
Join date : 2014-06-12
Re: Browns to sell 5 hotels
Ethical Trader wrote:Buying & selling companies is not a bad business, provided they restructure improve performance & sell with a profit, but it takes time to realize profits. Must get more details to study this.
1) Best we note this is news paper item only still.
We don't know the truth of them selling even.
We seen such news paper items over the years which didn't come true.
Remember how FLCH was once promoted over a news paper item saying that DP will buy. It never happened then.
Most important thing is , if this is true soon LOLC group will need to post
a formal report to CSE as this news is price sensitive and to clarify if is true.
2) Have no Motivation or time to post a detailed report.
But to help interested parties , let me take 15 minutes to give some things to think about and important facts I recall.
i) Note the link I posted above .
Only few weeks ago EDEN was buying hotels from from BIL.
Question is why did they do that ?
a) Is it another inter company "thing" this group always does to restructure
b) Is it to get rid of some BIL debts , transfer to EDEN and then sell.
ii) Also only 1 year ago , EDEN had right issue at Rs 20
iii) Then I recall some Brown related company had mandatory offer at the same price ( RS 20) .
iv) But now share price is Rs 24-25 It was trading Rs 10 -12 not so long ago.
Questions to think about if anyone wants earn decent money
EDEN is already in big debt and loss making. Over the May hotel buys ( see link I gave) their debt will increase.
Golden question is even if they want to sell , what is the price anyone would pay for EDEN ?
Remember right issue price /mandatory offer price was Rs 20.
What kind of assets/goodwill will the May hotel buys make
( positive or negative) . That will have an impact on their N assets.
So the selling/buying price ( even if this is true) will depend .
Seems this news got leaked last week and some people created speculative pumps and also trading over the news .
But real question now is if this news is true , what is EDEN worth for some buyer ( after the May hotel buys) .
Very interesting to see how all these LOLC group companies are suddenly making lot of news right now . FLCH and BIL first. LOLC itself.
Now EDEN .
Guess, it parent ( who is loss making and in debt too) might give some trading ops.
Post Update :
I suddenly recalled some even bigger news ( think it was last year) where they ( group) will need some huge money ( multi billions) to build some resort outside Sri Lanka. Not sure they actually want to sell existing properties and built new ones !! Seems this is getting to be a detective thing. Can see big money is moving here and there within the group ( this is getting rather interesting) . But what is there for share holders ?
At this time, I have no holding of EDEN. I am posting all this info taking time for public knowledge thinking it would help someone.
- WasteofTime
- Posts : 271
Join date : 2014-09-29