Browns Beach Hotels to Delist from CSE with Rs. 30 Exit Offer 📈

• Overall Proposal: Browns Beach Hotels PLC (BBH) has resolved to voluntarily delist from the Colombo Stock Exchange (CSE), offering minority shareholders an exit price of Rs. 30 per share. This represents a premium over its last closing price of Rs. 23.20. • Financial Position: The company reported net liabilities of Rs. 6.10 per share as of September 2025. Sustained losses since 2019—driven by the Easter Sunday attacks, COVID-19, and the economic crisis—have led to a negative net asset position and an "Emphasis of Matter" on its ability to continue as a going concern. • Sector & Compliance Context: Operating in the tourism & leisure sector, BBH cited inadequate revenue projections to resolve its "Going Concern" status or resume dividend payments. The company is also currently non-compliant with minimum public holding requirements and sits on the CSE Watch List. • Ownership & Valuation: • Top Shareholders: Melstacorp PLC (41.88%) and Aitken Spence Hotel Holdings (36.62%) will facilitate the purchase of minority shares. • Fair Value: The Rs. 30 offer exceeds the independent valuation by BDO Partners, which noted an intrinsic value of negative Rs. 19.31 (DCF) and a 1-year volume-weighted average price of Rs. 18.58. • Next Steps: The delisting remains subject to shareholder approval at a General Meeting and final clearance from the Securities and Exchange Commission of Sri Lanka (SEC).