BROWNS BEACH HOTELS PLC, a leading hotel company listed on the Colombo Stock Exchange (CSE), will be delisted after April 27. Accordingly, today marks the final day of trading for the company’s shares, while the official delisting will take effect from tomorrow (April 28).
The background to the delisting is as follows:
The hotel, operating under the name Sentido Heritance Negombo, is part of the Aitken Spence Hotel Group, which comes under the Melstacorp Group. The majority of the company’s share capital is held by Melstacorp PLC and its subsidiaries.
Sri Lanka’s hotel sector has faced major challenges in recent years due to the Easter Sunday attacks, the Covid-19 pandemic, and the country’s economic crisis. As a result, the company has recorded continuous financial losses since 2019 and has faced a difficult financial position, leading to the earlier decision to delist from the stock exchange.
As part of the delisting process, the company has proposed to pay Rs. 30 per share to its minority shareholders.
The company first announced its delisting proposal on January 19 this year.
