Palm Garden Hotels PLC, a member of the LOLC group, is planning to amalgamate with Riverina Hotels PLC, also a member of the group, to optimize the use of the assets of both companies to facilitate the construction of a 500-room international star rated hotel, Palm Garden announced last week through a Stock Exchange filing.
Both Palm Garden and Riverina owning hotel properties along the Golden Mile at Beruwala are operated under the banner of LOLC Leisure, a member of the LOLC group, which some months ago acquired control of properties previously owned by the Confifi Group.
Palm Garden’s Stock Exchange filing said that the proposed amalgamation for which CSE and shareholder approval will be sought will be by the issue of Palm Garden shares in exchange for Riverina shares with every two Riverina shares receiving one Palm Garden share.
This would result in approximately 14.2 million Riverina shares being converted with Palm Garden currently having 7.2 million shares in issue going up to 14.3 million issued shares.
Palm Garden has announced that at the conclusion of the amalgamation, the continuing company will be Palm Garden Hotels PLC and the new hotel will be built under a wholly owned subsidiary of Palm Garden Hotels PLC to enable the company to qualify for BOI incentives.
Riverina Hotels PLC has also disclosed this pending transaction in a separate Stock Exchange filing.