So LOLC received Rs.1015 million (Rs. 1.015 billion) for 70% and BIL received Rs. 435 million for 30% stake.
On the same day (20th March 2014) BIL bought 70% of LOLC Leisure for Rs. 2.8 billion.
That means total valuation of LOLC Leisure is Rs.4 billion. How did Rs. 1.45 billion valued company that concluded a share buyback on 20th March 2014 offered a 70% stake on the same day for Rs.2.8 billion whilst LOLC Leisure being an unlisted company.
Over 175% increase in company value within the same day according to valuation.
Don't you guys think country's company valuers and accountants should be questioned on this.
Extract for reference from Colombo Stock Exchange Filings.-
BIL said that LOLC Leisure is the controlling shareholder of Palm Garden Hotels PLC (PALM), Eden Hotel Lanka PLC (EDEN), Dickwella Resots Pvt Ltd, Tropical Villas Ltd and Riverina Resorts (Pvt) Ltd where LOLC held 70% of the shares of LOLC Leisure and Browns Investments PLC (BIL) held 30% of the shares of LOLC Leisure prior to the acquisition of 70% stake of LOLC Leisure by BIL.
BIL is the controlling shareholder of Green Paradise Resort Pvt ltd, Samudra Beach Resorts Pvt Ltd and Sun & Fun Resorts Pvt Ltd in addition to the 30% stake it held in LOLC Leisure.
In another announcement to Colombo Stock Exchange (CSE), BIL said on the 20th of March 2014 consequent to the resolution passed by the Shareholders of LOLC Leisure Ltd (LOLC Leisure) to effect a share buyback Browns Investments PLC received Rs. 435 million (for 30% stake) as consideration for the shares being transferred back to LOLC Leisure Ltd.
"On the 20th of March 2014 the Board of Directors of BIL approved the acquisition of balance 70% shareholding of LOLC Leisure to BIL for a consideration of Rs.2.8 billion. With this acquisition BIL will become one of the largest leisure sector operators in the country having nearly 1,000 rooms under its management" announcement said.
Lanka Orix Leasing Company PLC (LOLC) the ultimate parent of Browns group owned Browns Investments PLC (BIL) and LOLC Leisure said that consequent to the effect of the share buy back offered by LOLC Leisure on 20th March LOLC received Rs. 1,015 million (over Rs. 1 billion) as consideration for the shares being transferred back to LOLC Leisure.