FINANCIAL CHRONICLE – Browns Beach Hotels in Sri Lanka has announced its decision to delist from the Colombo Stock Exchange. The company has coordinated with majority shareholders, Melstacorp and Aitken Spence Hotel Holdings, to facilitate a buyback of shares from minority shareholders at an exit offer price of 30 rupees.
This decision follows a thorough evaluation of the company’s current financial status and future profitability prospects, particularly in light of forecasts for the tourism industry and the existing debt situations of the company and its subsidiary.
In a filing with the stock exchange, Browns Beach Hotels disclosed that the business has been enduring consistent losses due to various challenges in the tourism sector since 2019, including the Easter Sunday attacks, the COVID-19 pandemic, and the ongoing economic crisis. The revenue generated over the past two years has been insufficient to counter these losses.
The company’s shares were added to the Watch List on August 1, 2024. Furthermore, the company acknowledged its non-compliance with the minimum public holding requirements. Despite exploring several options to address this issue, the management and Board have concluded that implementing rectification measures is not feasible under the current economic conditions.
Given these circumstances, the management and Board believe that delisting the company’s shares from the Official List of the CSE is the most prudent course of action. This move will also provide minority shareholders the opportunity to exit their investment in the company.
The delisting process is contingent upon receiving regulatory and shareholder approval. (Colombo/Jan19/2026)
