Foreign investor acquires controlling stake of Ramboda Falls for Rs.279mn

A foreign investor yesterday acquired the controlling stake of Ramboda Falls PLC, which owns and operates two resorts with a collective room capacity of 63 in two unique locations in the country.

Stockbroker Assetline Securities yesterday said its client Yeoh Kim Leng acquired 10.4 million shares or 52 percent of Ramboda Falls PLC for Rs.278.8 million, paying Rs.26.80 per share.

The transaction triggered the requirement of a mandatory offer from the buyer.
The sellers of the shares were believed to be the two largest shareholders and directors of Ramboda Falls PLC, Sasanka Sigera and Ananda Karunarathne, who as at March 31, 2022 held little over 7 million shares of Ramboda Falls or 35.4 percent each.

The net assets per share of Ramboda Falls as at March 31, 2022 was Rs.19.87, down from Rs.19.56 a year ago.
According to the company’s financial reports, it typically generates over Rs.100 million worth revenue in a normal year. However, the 2019 deadly Easter attacks and the pandemic had delivered a blow to its revenue and profits as tourist arrivals declined significantly.

Ramboda Falls is particularly popular among Japanese tourists, according to tourism industry sources. 
For the FY21/22, the company made a net profit of Rs.6.2 million compared to a net loss of Rs.24 million a year ago, on revenue of Rs.47.6 million. 

Ramboda Falls has two resort hotels – Ramboda Falls Hotel in the hill country, which has 45 luxury rooms, and Muwan Palassa Resort facing the Polonnaruwa-Habarana main road with 18 luxury rooms.