The Firm recently advised TAL Lanka Hotels PLC (the “Company”) on the private placement of shares to its major shareholders TAL Lanka Hotels and Resorts Limited and IHOCO B.V. Loans granted by the two major shareholders during the COVID-19 pandemic for the purposes of meeting working capital requirements, were converted to shares.
A total of 32,228,524 ordinary voting shares were issued to TAL Lanka Hotels and Resorts Limited and IHOCO B.V. at a consideration of Sri Lankan Rupees Forty-One (LKR 41) per share in the proportionate outstanding loan amount due and payable by the Company to each major shareholder. The Company continues to satisfy the minimum public holding requirement for listed companies on the Diri Savi Board of the Colombo Stock Exchange, as stipulated in the Listing Rules.
The private placement aims to strengthen the Company’s financial position, improve its debt to equity ratio, reduce interest costs and loan repayment commitments.
The Firm advised the Company on all aspects of the conversion of loans and the issue of shares by way of a private placement up to the successful conclusion of the referred to corporate action.
The team consisted of Ayomi Aluwihare, Precedent Partner and Afra Laffar, Senior Associate.
Further information can be found at: bizenglish.adaderana.lk , www.ft.lk.