FINANCIAL CHRONICLE – Melstacorp and Aitken Spence Hotel Holdings have proposed to acquire shares from minority shareholders of Browns Beach Hotels at a price of 30 rupees each, ahead of the company’s planned delisting from the Colombo Stock Exchange in Sri Lanka.
In March, Browns Beach Hotels disclosed its decision to remove its shares from the official listing of the CSE and revealed that arrangements had been made with its two major shareholders to facilitate the purchase of shares from minority investors.
The company stated in a filing with the stock exchange, “Minority shareholders are not obligated to accept the Exit Offer. Those who prefer to maintain their shareholdings in the company are free to do so.” It further clarified that minority shareholders have the option to accept the offer either in full or in part for the shares they hold.
The window for accepting the exit offer began on May 5 at 9 AM and is set to close on June 5 at 4:30 PM.
Earlier in January, Browns Beach Hotels had reported ongoing financial difficulties, attributing them to the adverse impacts on the tourism sector since 2019, which include the Easter Sunday attacks, the Covid-19 pandemic, and the subsequent economic crisis. The company’s revenue over the past two years has failed to sufficiently cover its losses.
