Pegasus Hotels announces plans to raise Rs.160mn via rights issue

Pegasus Hotels Ceylon PLC yesterday disclosed plans to raise Rs.160 million from shareholders.
The Carson Cumberbatch Group company said it plans to issue 8.4 million ordinary shares in the proportion of one new share for every four existing issued ordinary shares, at a price of Rs.19 per share.
The rights issue is subject to the Colombo Stock Exchange and shareholder approval. 
The company said the proceeds of the rights issue would be used to subscribe for the rights issue of Equity Hotels Limited, a subsidiary of Pegasus, before October 31, 2023.
The proceeds will also be utilised as capital expenditure of Pegasus Reef Hotel, before December 31, 2024.
The current stated capital of the company is Rs.591.1 million.
Pegasus share fell 10 percent or by Rs.2.80 to Rs25.30, following the release of the rights announcement before the start of trading yesterday. The previous close was Rs.28.10.
Pegasus carried out a one for nine rights issue, at Rs.22.50 per share, in August last year, which raised Rs.76 million.
Carson Cumberbatch owns 30.38 million or 90 percent of the issued shares of Pegasus.