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Tax Free


Asian Hotels will merge with fully owned subsidiary Crescat Developments (CDL) to take up recent tax relief offered to help under performing industries.
The government in March offered the concessions for companies to merge with non-performing industries.
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rnThe merger will give the two firms an additional three year tax holiday and customs duty and exchange control concessions. rn

rnAdding the new concession that will come out of the merger to existing privileges, the two firms will enjoy a 12 year tax holiday, Asian Hotel Directors told shareholders on Friday. rn

rnCreascat Developments will be the new legal entity, also replacing the firm in the Colombo Stock Exchange when the regulatory authorities approve the deal. rn

rnCompany officials have already sought regulatory approval for the merger and listing. rn

rnExisting Asian Hotels shareholders will be allotted shares in CDL also. rn

rnIn a statement to shareholders Asian Hotels officials said Creascat Developments Limited had signed

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