Jetwing goes to Court over SEC ruling on Lighthouse Hotel stake

Jetwing Hotels Group on Monday went to Court against the ruling given by the Securities and Exchange Commission (SEC) with regard to the Company’s purchase of shares in The Lighthouse Hotel.
The Company in the Court of Appeal sought a writ against the SEC enforcing its ruling and prayed for relief. This however was not granted but the Appeal Court bench comprising President Justice S. Hettige PC, and Justice A. Gunaratne, issued notice on the respondents and to file objections before June 1.
PC K. Kanag-Isvaran instructed by S.J.G. de Sarams appeared for Jetwing Hotels, Attorney at Law Sanjiv Jayawardena instructed by Julius and Creasy appeared for Carbotels Ltd., whilst Ms. Bari, Senior State Counsel, Attorney General’s Department appeared for SEC.
The SEC last week directed Jetwing to either make mandatory offer (at Rs. 60.50 per share) or shed its shareholding from an estimated 36% to 30% in The Lighthouse Hotel. The ruling follows Jetwing together with its strategic partner Hayleys (which owns 26% stake) bidding for a block of 3.3 million shares or 7% stake (including the block owned by co-founder CIC Group) in late March.
Though by virtue of their previous 51% collective holding, Jetwing and Hayleys have been acting in concert in the past, the acquisition of fresh 7% stake midst bidding was perceived as “hostile” and tantamount to not acting in concert. The SEC gave the ruling after consulting the AG’s Department whilst Jetwing from the inception has been maintaining that its purchase wasn’t hostile but was acting in concert with Hayleys. The latter however maintained that it wasn’t acting in concert with Jetwing.
Apart from The Lighthouse Hotel, the two companies part own a slew of resorts which are managed by Jetwing. There are over 800 shareholders in the Lighthouse Hotel Ltd., issued capital of which is 46 million shares.