Today, the 27th of the month, marks the last day for trading shares of Browns Beach Hotels PLC (BBH) on the Colombo Stock Exchange (CSE) as the company prepares for its official delisting.
According to Section 14.1.3 of the CSE Listing Rules, the trading of the company’s shares will come to a halt starting tomorrow, the 28th.
This delisting decision follows a resolution passed by the board in early 2026, prompted by a significant decline in the company’s financial health. Browns Beach Hotels has been experiencing ongoing financial losses since 2019, first due to the aftermath of the Easter Sunday attacks and later exacerbated by the COVID-19 pandemic alongside a wider economic downturn.
The company has also expressed concerns that anticipated revenues from the tourism sector will not be adequate to alleviate the going concern issues identified in its 2024 audit report. Furthermore, it has not met the minimum public float requirements and continues to report a negative net asset status, which has hindered its ability to distribute dividends.
In relation to the delisting, majority shareholders Melstacorp PLC and Aitken Spence Hotel Holdings PLC have proposed an exit price of LKR 30.00 per share for minority shareholders.
This offer, based on an independent valuation conducted by BDO Partners, provides a premium over the volume-weighted average price (VWAP) of LKR 18.58 and the estimated intrinsic value of the shares.
Source: Financial Chronicle Biz English | Sri Lanka Business News.
