Twin Sharing

ldblquote In a strategic move AHOT and Crescat Developments are to be merged by early February in order to take advantage of Crescat Developments BOI status,
dblquote said HNB Stock Brokers in its January review of the group.rn

rnThe Asian Hotels Corporation (AHOT) owns the Colombo Plaza Hotel and Crescat Developments and has controlling interest of Trans Asia Hotel.rn

rnA merger with Crescat Developments, which is a BOI company, will allow sharing of BOI tax benefits with the two hotels and will contribute towards cushioning the refurbishment costs of the hotels.rn

rnAHOTs refurbishment plans for the Colombo Plaza and the Trans Asia to increase overall room availability add up to over Rs. 1 billion.rn

rnThe main benefit of the merger would be an extended tax holiday for the new company that is formed by the merger.rn

rnAccording to BOI laws a merger between a BOI company and a loss making entity would allow an extended tax holiday for the combined entity.rn

rnThe new tax holiday will be thre