Thursday, October 6, 2011

Galadari announces debt conversion

Galadari Hotels Lanka announced that its Board of Directors had decided on Monday to convert debts owing to the National Insurance Trust Fund and Galadari Brothers LLC into equity at a conversion price of Rs.15.26 per ordinary voting share subject to the necessary regulatory and Exchange Control approvals.

The company owes Insurance Trust Fund Rs.583.4 million including interest and Galadari Brothers Rs.5.75 billion (US$ 520 million).

The shares due to the Insurance Trust Fund will be allotted to the Secretary to the Treasury, the company said in a Stock Exchange filing.

The conversion price is based on valuations made by the NDB Investment Bank and PriceWaterHouseCoopers that had coincided with the valuation provided to the Treasury by the Chief Valuer.

Galadari shares closed at Rs. 31.40 yesterday, down from the previous day’s close of Rs. 32.20.

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