Browns Beach Hotels (BBH) Ends CSE Trading Ahead of Delisting 📉

• Overview: Trading of Browns Beach Hotels PLC (BBH) shares concludes today (27), with a formal suspension effective tomorrow (28) as the company prepares for delisting from the Colombo Stock Exchange (CSE). • Financial Drivers: The delisting follows a sustained downturn in financial health since 2019. Key pressures include: • Persistent losses attributed to the Easter Sunday attacks, COVID-19, and the national economic crisis. • A negative net asset position and failure to meet minimum public float requirements. • A 2024 audit report highlighting "going concern" risks due to insufficient tourism revenue. • Exit Strategy: Majority shareholders Melstacorp PLC and Aitken Spence Hotel Holdings PLC have offered minority shareholders an exit price of LKR 30.00 per share. • Valuation Insights: The exit price represents a significant premium over the volume-weighted average price (VWAP) of LKR 18.58, based on an independent valuation by BDO Partners. • Industry Context: The move underscores the lingering challenges within the hospitality & tourism sector for specific distressed assets despite broader national recovery efforts.