Aug 23, 2016 (LBO) – Sri Lanka’s Browns Beach Hotels is to raise 1.4 billion rupees by way of a rights issue subject to necessary approvals, the company said in a stock exchange filing.
The company is to issue 54 million new ordinary shares at 25.85 rupees each in the ratio of 5 new shares for every 12 shares held.
The rights issue is subject to obtaining the approval of the shareholders at an Extraordinary General Meeting of the Company.
The current stated capital of the company is 2.4 billion rupees comprised of 130 million ordinary shares.
The proceeds will be utilized to reduce the existing debt levels of the company and to finance the escalation of project costs of the Star Class Hotel in Negombo, the company said.
Browns Beach Hotel ceased its operations on 31st March 2011 to facilitate the construction of a new resort.
The new hotel construction work was done under, Negombo Beach Resort (Pvt) Ltd. which is a fully owned subsidiary of Browns Beach Hotels PLC.