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Hospitality operator Banyan Tree Holdings has purchased an additional 124,680 shares in Beruwela Walk Inn (BWI), a Sri Lanka-based company, for about S$143,631 or S$1.15 apiece.
“The book value and the net tangible asset value of the BWI shares which are the subject of the Purchase is a negative net worth of LKR34,208,620 (approximately S$328,403). Banyan Tree was notified of the completion of the transfers of the relevant BWI shares [to the company] on 23 September,” said the company in an SGX filing.
As a result, Banyan Tree’s stake in BWI has increased from 79.85 percent to 93.7 percent. The latter has also been delisted from the official roster of Colombo Stock Exchange on 24 September.
Apart from privatising the company, the aim of this acquisition is to facilitate the redevelopment of a hotel in Beruwala that is owned by BWI, but was destroyed by a tsunami on December 2004, it explained.
The deal was fully funded by Banyan Tree’s internal resources and will unlikely affect the company’s net tangible assets per share of and its subsidiaries on a consolidated basis for the fiscal year ending 31 December 2014.
Meanwhile, Banyan Tree has incorporated a hotel management firm known as Banyan Tree Management (S) Pte Ltd, which is 100-percent owned by Banyan Tree Services.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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