Hayleys announces strategic changes to portfolio

Hayleys PLC has announced that it has increased its stake in Hayleys MGT Knitting Mills, and divested its holdings in two hotel properties as part of a strategic restructuring of its portfolio.

A statement from the Sri Lankan multinational conglomerate said it had acquired the National Development Bank's (NDB's) shares in Hayleys MGT, thereby increasing its stake in the latter to 55 percent from 41 percent.

The investment of Rs 210 million in 6.9 million shares of Hayleys MGT Knitting Mills was based on a consideration of the company's growth potential, the statement said.

The Hayleys Group's cotton and synthetic fabric manufacturing business reported a net profit of US$ 602,000 for the first quarter of 2009-10, on a turnover of US $ 11.8 million.

The commissioning of a new bio mass energy generating plant and the installation of a printing facility are expected to contribute significantly by offsetting high energy costs and adding value to the company's product range, the statement added. Both these initiatives were reported in Hayleys MGT's Annual Report for the year ended 31st March 2009.

Hayleys also announced it had divested its 50 percent holding in Royal Heritage Hotel, the owner of 'Vil Uyana', and its 49 percent stake in Seashells Hotel, Negombo as part of the strategic restructuring of its holdings.