Hikkaduwa Beach Rights Issue oversubscribed

The Rights Issue of Hikkaduwa Beach Resort PLC, calling for subscription for 257,765, 177 shares to raise Rs. 902 million, has been oversubscribed.

In a filing to the Colombo Stock Exchange (CSE), Hikkaduwa Beach Resort said the Rights Issue has been oversubscribed by 38, 159, 451 shared (Rs. 133,558,078/50).

The proceeds of the issue will be utilised to settle outstanding related party loans of the company borrowed from Citrus Leisure PLC. amounting to Rs. 566,317,618, which is within the subscription amount by Citrus Leisure PLC under its entitlement in the Rights Issue. 

The proceeds will also be used to facilitate the full subscription of the company’s entitlement in the Rights Issue of Waskaduwa Beach Resorts PLC (CITW) amounting to Rs. 219,386,694, and subscribe to any additional shares required to raise the full amount under the Rights Issue of CITW up to a maximum of Rs.116, 473,809.

The proceeds will be utilised to retire non-related party loans of the company to the maximum extent possible, if in the event of any funds raised via the Rights Issue, remaining with the company post subscription to the Rights Issue of CITW up to a maximum of Rs. 116, 473,809. For this purpose, the identified non-related party loan is a bank loan which will be partly settled up to Rs. 116,473,809.