Citrus ups investment in subsidiary

Citrus Leisure Plc has invested a further Rs. 297 million in subsidiary Hikkaduwa Beach Resort Ltd. (HBR), bringing the total to Rs. 660 million as well as increasing the stake to 98.7%.

This follows the fundraising exercise by HBR to the tune of Rs. 311 million via 15.5 million shares at Rs. 20 each being undersubscribed. There had been subscription for only 0.6 million shares from shareholders of Citrus after which the Company (Citrus) absorbed the balance.This was on the basis that prior to placing these shares with third parties the Board was of the view that Citrus shareholders should be given the right to subscribe in the first instance.

The offer for Citrus shareholders closed on 30 December after which HBR sought subscription from third parties until 30 January. Upon under-subscription, the Citrus Board resolved to take up the unsubscribed amount.  The Rs. 297 million invested amounts to over 5% of the total assets of Citrus.

HBR’s fund raiser was to construct 40 additional rooms.