Gardiner collects 2% Kandy Hotels stake from foreign fund

Sanjeev Gardiner-controlled Hotel International Ltd. yesterday picked up a 2.3% stake in Kandy Hotels Company for Rs. 72 million.

The seller was HSBC International Nominees Ltd-UBS Ag Singapore Branch. The parcel amounting to 13.2 million shares was done at 50 cents below Friday’s closing price.

Hotel International is a related company to Kandy Hotels Company (KHC).

Ceylon Hotels Corporation, controlled by Sanjeev Gardiner, holds 76.54% stake in KHC along with Ceylon Hotels Holdings Ltd., (9.77%). Prior to yesterdays purchase Hotel International held 0.8% stake as at 31 March 2012.

During FY12, KHC posted a net profit of Rs. 84.2 million, up by 74% over the previous year. Revenue rose by 36% to Rs. 392 million whilst profit from operations improved by 130% to Rs. 97 million. KHC owns both Hotel Suisse as well as Queens in the hill capital.