Shareholders approve Riverina, Palm amalgamation

Tuesday, 25 September 2012 01:02 - - {{hitsCtrl.values.hits}}

Shareholders of Riverina Hotels Plc (RHL) and Palm Garden Hotels Plc (Palm) yesterday approved the amalgamation of the former with the latter.

Following this development, trading in the shares of RHL will be suspended with effect from today.

Yesterday RHL share price rose by Rs. 11.70 to Rs. 96.70 whilst it hit an intra-day high of Rs. 104, around Rs. 21 short of its all time high. Nearly 143,000 shares of RHL traded. Share price of PALM gained by Rs. 4.50 to close at Rs. 178.60 whilst it touched an intra-day high of Rs. 184. Last week it rose by Rs. 4.20.

The number of issued shares in PALM will increase consequent upon the Registrar General of COmpanies (ROC) issuing the amalgamation certificate and the Colombo Stock Exchange granting a listing for the new shares.

The date of amalgamation will be the date on which the ROC issues the certificate of amalgamation after which the shares of RHL will cease to exist.