SERENDIB HOTELS PLC - Rights Issue

God Father · 1 SERENDIB HOTELS PLC - Rights Issue Fri Nov 04, 2022 3:26 pm

God Father

Senior Manager - Equity Analytics

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ISSUE OF ORDINARY VOTING AND NON-VOTING SHARES BY WAY OF RIGHTS:
In order to infuse fresh capital to the Company of up to Rs. 2,017,942,170/-

Purpose of the Rights Issue is to settle:
(1) loans obtained to acquire Dolphin Hotels PLC and Hotel Sigiriya PLC,
(2) the cost of recent refurbishment of Avani Hotel owned by the Company.
(3) loans obtained to acquire Lantern Villa

Hotel ownership

SERENDIB HOTELS PLC - Rights Issue Scree146

Latest Accounts

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https://cdn.cse.lk/cmt/upload_report_file/601_1660305106652.pdf

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SERENDIB HOTELS PLC - Rights Issue Scree144

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https://cdn.cse.lk/cmt/announcement_portal_prod/02-SHOT%20-%20Circular%20to%20Shareholders%2027th%20Sep%202022_12964860169719.pdf

DeepFreakingValue · 2 Re: SERENDIB HOTELS PLC - Rights Issue Fri Nov 04, 2022 8:20 pm

DeepFreakingValue

Manager - Equity Analytics

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As per the proposed Rights Issue, Serendib Hotels (SHOT) is required to raise LKR 2bn to pay for the acquisition of Dolphin Hotel (STAF) and Hotel Sigiriya (HSIG). Eden Lanka Hotels (EDEN) being the majority shareholders of Serendib Hotels (SHOT) will have to subscribe more than LKR 1bn to maintain their current shareholdings in Serendib Hotels. This is likely to result in Rights Issue of Eden Lanka (EDEN) triggering further rights issues within the group, eventually ending up with a rights issue of Browns Investments (BIL) which is the ultimate holding company of hotel chains of Serendib Hotels (SHOT) and Palm Garden (PALM) in Joint collaboration with LOLC and HNB.

Share Ownership of Serendib Hotels (SHOT)
Majority shareholdings of Serendib Hotels is held by Eden Hotels (EDEN)

SERENDIB HOTELS PLC - Rights Issue Screen58

Share Ownership of Eden Lanka Hotels (EDEN)
Majority shareholdings of Eden Hotels (EDEN) is held by Palm Garden Hotels (PALM)

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Share Ownership of Palm Garden Hotels (PALM)
Majority shareholdings of Palm Garden Hotels (PALM) is held by Browns Hotels and Resorts Limited, unlisted which is owned by Browns Investments (BIL).