Sept 05 (LBO) – Serendib Hotels said Tuesday it would go in for a private placement to sell a 19.90 percent stake in the company to Minor International Public Company Limited, a large Thai resort operator.
The company, which owns a chain of three hotels Hotel Serendib, Club Hotel Dolphin and Sigiriya Hotel, plans to upgrade its properties to between four and five star status.
The company hopes to go in for a private placement of 2,395,521 voting ordinary shares of ten rupees each at a price of 43 rupees a share and 1,145,080 non-voting ordinary shares at a price of 30 rupees a share.
The private placement is subject to approval by shareholders and the Colombo Stock Exchange (CSE), the company said in a statement to the CSE.
It is a fairly straightforward transaction and we expect that it will go through within about a month, Srilal Miththapala, Director and Chief Executive Officer of Serendib Leisure Management told LBO.
Minor International will step in to develop and manage Serendib’s hotel properties, upgrade operational and service standards, and reposition the hotel.
We are still working on plans to develop the three properties. Most probably Hotel Serend