Spence Hotel triggers Takeovers Code on Browns Beach

Thursday, 3 March 2011 01:59 - - {{hitsCtrl.values.hits}}

Aitken Spence Hotel Holdings has triggered the SEC Takeovers and Mergers Code on Browns Beach Hotels Plc after it took up the shortfall of shares under the latter’s rights issue.

Prior to the Rights issue, Spence Hotel Holdings held 28.7% stake (amounting to 2.75 million shares) and the Company said it had acquired 33.2% or 14.34 million shares consequent to taking up the shortfall of the shares of the Rights.

Aimed at raising Rs. 2.18 billion, the Rights Issue was on the basis of 7 for 2 at Rs. 65 each and 33.6 million shares were listed on 25 February. The company is building a luxury resort demolishing the old hotel in Negombo. Post rights the share will be sub divided into three shares for every one held.

As per the Company Takeovers and Mergers Code 1995 as amended, Spence Hotel Holdings will make an offer to the other shareholders of Browns Beach Hotels PLC to purchase their shares after the share split of one share into three shares at a price of Rs. 21.70 per share.

Browns Beach share yesterday traded between a high of Rs. 69 and a low of Rs. 63 before closing at Rs. 66, down by Rs. 1.30.

As at December 31, 2010, Stassen Exports held 44.2% stake in Browns Beach whilst Distilleries held 3.43% and Milford Exports owned 2.6%. Several related parties also held stakes in Browns Beach.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.