Mar 10, 2014 (LBO) - Banyan Tree Holdings Limited said it will take its Sri Lanka unit private which was in need of fresh capital and was hit by a newly introduced minimum public float restriction.
Banyan Tree controls 79.8 percent of Beruwala Walk Inn, a hotel that was hit by a tsunami in 2004.
The firm said it needed a fresh capital infusion to rebuild the hotel. But if some minority shareholders do not take up their entitlements of shares, the company will not be able to meet a requirement for a 20 percent minimum public float.
The firm said in a stock exchange filing that the majority shareholder would offer 120 rupees per share. The stock last traded at 104 rupees.
Beruwala Walk Inn is one of the early victims of the minimum public float rule.
The rule was brought by authorities after being egged on by interventionists shortly after stock manipulations during a stock market bubble fired by low interest rates and margin credit.
Related News:
http://www.cse.lk/cmt/upload_cse_announcements/9431394422893_.pdf
Banyan Tree controls 79.8 percent of Beruwala Walk Inn, a hotel that was hit by a tsunami in 2004.
The firm said it needed a fresh capital infusion to rebuild the hotel. But if some minority shareholders do not take up their entitlements of shares, the company will not be able to meet a requirement for a 20 percent minimum public float.
The firm said in a stock exchange filing that the majority shareholder would offer 120 rupees per share. The stock last traded at 104 rupees.
Beruwala Walk Inn is one of the early victims of the minimum public float rule.
The rule was brought by authorities after being egged on by interventionists shortly after stock manipulations during a stock market bubble fired by low interest rates and margin credit.
Related News:
http://www.cse.lk/cmt/upload_cse_announcements/9431394422893_.pdf
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