Negative net worth Beruwela Walk Inn to delist with Rs. 120 per share offer
Tuesday, 11 March 2014 02:48
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The Board of Directors of the negative net worth Beruwela Walk Inn (BINN) yesterday announced a de-listing offer at Rs. 120 per share emphasising that options to revive the company haven’t fully materialised.
The Board said it has been considering various options to determine the best way forward for BINN to redevelop its only property in Beruwela, 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.
Consequently, the Board has made a decision to seek the approval of the shareholders to de-list BINN from the Colombo Stock Exchange (CSE) and to arrange to buy the shares from any shareholder who wishes to sell their shares.
The majority shareholder, Banyan Tree Holdings Ltd. has agreed to purchase all shares offered for sale by the shareholders at Rs. 120.00 per share (subject to approval).
Net asset per share as at 31 December 2013 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%.
