84% of shareholders approve Beruwala Walk Inn delisting
Thursday, 3 April 2014 00:24
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A majority 84% of the shareholders of Beruwala Walk Inn Plc (BINN) has approved the delisting o the company at the recently held Extraordinary General Meeting.
The Company said two resolutions were approved by 84% of the shareholders present by person and proxy voting in favour.
One resolution is delisting from the CSE and submit an application for the same to the SEC and approve the offer price of Rs. 120 which the majority shareholder Banyan Tree Holdings Ltd will pay in acquiring shares from anyone who wishes to sell his or her stakes.
The other special resolution was to approve the change of status of the Company to a non-listed company subject to regulatory approval. The decision to de-list by the Board of Directors of the negative net worth BINN Beruwala Walk Inn (BINN) was after options to revive the company failing to materialise.
The Board said it has been considering various options to determine the best way forward for BINN to redevelop its only property in Beruwala, which was destroyed by the tsunami on 26 December 2004, within a constrained financial capacity, resulting from significant accumulated losses and large borrowings.
“Any new potential redevelopment of the hotel will require substantial infusion of funds and such funds are not available from financial institutions due to the negative net worth position of the company (-Rs. 222.6 million as at 31 December 2013),” the company said.
Net asset per share as at 31 December 2013 of BINN was a negative Rs. 247.38, up from a negative Rs. 187.57 a year earlier.
BINN last traded at Rs. 104 on 4 March. In the quarter ended on 31 December 2013, the highest traded price was Rs. 109.80, lowest was Rs. 70 and the closing was Rs. 90. Its all-time high is Rs. 350.30 and all time low was Rs. 4.50. Banyan Tree holds 80% stake in BNN. Other major shareholder is K.M.K. Holdings (3.7%) whilst the company has a host of high net worth and retail shareholders. As at end 2012, BINN had 396 shareholders, of whom 370 held shares up to 1,000 accounting for 7.76%.
