Financial Times

JKH in AHC; Everyone is overjoyed
John Keells Holding Ltd (JKH) firmed its position as the biggest hotelier in the country last week, buying a majority stake in Asian Hotels Corporation Ltd (AHC) and also investing for the first time in city hotels. AHC owns the Colombo Plaza and is a major stockholder at the Trans Asia Hotel in addition to Crescat Developments which owns the Crescat Boulevard and Crescat Residencies.

The surprise announcement came via the stockmarket where JKH acquired a 60.5 percent stake in AHC which included the entire stock held by Malaysian tycoon Tan Sri Azmi Wan Hamza and David Watts - once a big player - who bought into the company in the early to mid-1990s. JKH chairman Vivendra Lintotawala said he would take over from Hamza as the new chairman of the group adding that the mandatory offer to buy the balance shares available would be made shortly.

'There would be some changes in the board but we don't anticipate any major changes in the developments taking place at the hotels," he said adding that the acquisition was as a result of the peace process."This is the peace dividend."

Employees of AHC group were euphoric over the changes, seeing it as beneficial to the group as well as the employees. "John Keells is a good company. My phones have not stopped ringing since the announcement. Everyone is happy. There is a buzz in the air," said one senior manager. JKH has a total of 2,200 hotel rooms in Sri Lanka and the Maldives and the new acquisition would add another 900 to the group.

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