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Sri Lanka Sigiriya Village Hotels to raise funds for revamp

Aug 09, 2010 (LBO) - Sri Lanka's Sigiriya Village Hotels is planning a rights issue to raise funds to refurbish and renovate its hotel in the island's north-central region, a stock exchange filing said.


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The company, which has a stated capital of 175 million rupees, is to issue 2.
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1 million ordinary shares priced at 90 rupees each in the proportion of seven new shares for every 23 existing shares held.

The company said it will spend 180 million rupees to renovate and refurbish the entire hotel while nine million rupees will be used to meet working capital requirements.



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The rights issue is not underwritten and subject to approval from share holders and the stock exchange.

Sri Lanka's tourism industry has recovered with the end of the island's 30-year ethnic war in May 2009 and many hotels are expanding or upgrading their properties.



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Hotel companies are also making use of a stock market boom following the end of the war and accelerating economic growth to raise funds from investors.

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