Marawila Resorts goes for Rs. 245 m Rights to refurbish

Thursday, 6 January 2011 00:37 - - {{hitsCtrl.values.hits}}

MARAWILA Resorts Plc’s Board of Directors yesterday resolved to raise Rs. 245 million via a Rights Issue to finance its refurbishment of the Club Palm Bay to better harness the post-war rebound in tourism.

The Rights Issue proposed is on the basis of one for every four held at Rs. 10 each and is subject to shareholder approval.

The Company’s share was trading yesterday between a high of Rs. 16.30 and a low of Rs. 15.50 before closing at Rs. 16.10, up by 60 cents with 1.4 million shares traded.

The Company’s current stated capital is Rs. 756 million.

In October the Daily FT exclusively reported the planned upgrade.

The Company plans to refurbish and reposition the 106-room Club Palm Bay to a luxury four star resort.

An expanded banquet hall that could accommodate 500 as opposed to 350 is also part of the upgrade.