Share price of Hunas Falls Hotels Plc continued its upward trajectory, touching an intra-day high of Rs. 160 before closing at Rs. 155.40, up by 18% as investors took speculative positions on possible sale of controlling stake by Hayleys Group.

The Rs. 23.60 gain was after 32,434 shares changed hands via 294 trades, creating a Rs. 5 million turnover. Last week Hunas Falls topped the gainers list up 63.7% or Rs. 51.30 to close at Rs. 131.80. It hit an intra-week high of Rs. 137.40. Around 85,000 shares changed hands via 516 trades for Rs. 10 million. Net Assets per share of Hunas Falls is Rs. 60.39 as at 30 September 2018, down from Rs. 63.67 a year earlier. 

Chairman of both entities, Mohan Pandithage said two major shareholders – Carbotels Ltd. and Amaya Leisure PLC – have informed that they have been approached by a prospective buyer to purchase the shareholding. This is subject to a due diligence.

Hayleys-linked companies Carbotels Ltd. holds a 50.22% stake, and Amaya Leisure has a 16% stake. The other major shareholder is Jetwing Group with 15%. The latter also managed the property until 2011. 

Company analysts said at least three parties are vying for the stake with Hayleys signing Non-Disclosure Agreements. A few months ago Jetwing had made a bid but Hayleys hadn’t found it attractive enough. 

The public holding of Hunas Falls is 31.06% held by 2,193 shareholders and if the deal goes through the eventual buyer will trigger the mandatory offer. 

Last year (FY18) Hunas Falls reported a loss of Rs. 13 million as against a profit of Rs. 3.2 million in the previous year. Industry analysts said any new buyer would be required to invest further in revamping Hunas Falls which is popular for weddings and honeymoons.