Harry Jayawardena-controlled Melstacorp and Aitken Spence Hotel Holdings PLC owned Browns Beach Hotel (BBH) recently informed Colombo Stock Exchange (CSE) that the group is aiming to raise over Rs.1.39 billion via a Rights Issue.

The company in a statement to CSE said that as per the resolution dated August 22nd, 2016 the board has decided to issue 54 million ordinary voting shares by way of a rights issue subject to the approval of the CSE and shareholders of the company. Company will thus issue 5 new ordinary voting shares for every 12 ordinary voting shares held by each investor.

The new rights will be valued at Rs.25.85 per share and the company said that the Browns Beach group is raising funds to reduce existing debt of the company and to finance the escalation of project construction costs of the star class hotel in Negombo, which is now branded as Heritance Negombo.

The financials of the company points out that the project was completed spending over Rs.5 billion to construct the new Heritance Hotel Negombo in premises which housed the Browns Beach Hotel. The company currently has 129.6 million shares in issue with a stated capital of Rs. 2.38 billion. (JA)