Debt Exchange

Steven Enderby, Chief Executive Officer, Hemas Holdings

Maldivian conglomerate Universal Enterprises took a 57.16% stake in Mahaweli Reach Hotel, a deal to settle the Hotels dues to DFCC Bank.
A rights issue for the shares in January sought to raise Rs. 269 mn, the outstanding amount from a Rs. 305 mn loan taken from DFCC in 1994 for refurbishment. rn

rnThe rights issue ups Universals present 2.42 percent stake to 59.58 percent. rn

rnUniversal on Tuesday made a mandatory offer to buy the remaining shares at Rs. 10. rn

rnMahaweli Reach Hotel Managing Director J.A. Panabokke told Lanka Business Online that the change in shareholding would not see a change in management. rn

rnPanabokke says the offer by Universal was mostly to fulfil regulatory requirements and that his family, which holds the balance shares, would not take up the offer.rn

rnUniversals intervention, Panabokke explains came on the invitation of the hotels management to bail out the resort from the brink of a parate execution by DFCC Bank. rn

rnThe hotel incurred a loss of Rs. 88 mn