Hotel Developers to make private placement
View(s):Hotel Developers, owning company of the Colombo Hilton, has resolved to pay back its loan to the Treasury through a private placement.
The company stated in a stock exchange filing that a maximum of over 235 million shares would be issued allotted to the Treasury at a price of Rs.10 per share. The current stated capital of the entity comprising over 1.8 billion shares amount to over Rs.8.1 billion.
The shares would be used to pay back the loan value of Rs.2.3 billion that would be made through a private placement pending the exchange’s and shareholder approval, the company stated. At present 80 per cent of the loan has already been converted by the government to equity.
In the meantime, the Colombo Hilton would be commencing its refurbishment drive amounting to approximately US$35 million and would be carried out on a progressive basis with partial closures from time to time.
As part of the refurbishment drive the hotel would be upgrading its rooms and making the necessary changes in line with the current demand to increase on capacity. A change on the designs catering to the modern trends would be in the offing, Hotel Developers General Manager Sudarshan Sri Rayen told the Business Times.