Colombo, Sri Lanka – August 25, 2026 – PEGASUS HOTELS OF CEYLON PLC (CSE: PQ 40) has announced a significant corporate action: a proposed sub-division of its existing ordinary shares. The Board of Directors, having identified the need to enhance the liquidity and tradability of the company’s stock, decided to subdivide every one existing ordinary share into two, subject to shareholder approval at an upcoming Extraordinary General Meeting (EGM).
This strategic move, initially announced to the Colombo Stock Exchange (CSE) on Tuesday, July 21, 2026, aims to make the shares more accessible and attractive to a broader range of investors. Importantly, the sub-division will not alter the Company’s Stated Capital, which will remain at Rs. 751,548,321/50, nor will it change the underlying assets or the inherent value of shareholders’ holdings. Instead, it will effectively double the number of shares in circulation while proportionally reducing the price per share.
Details of the Proposed Share Sub-Division
The sub-division will be implemented on a one-for-two basis. This means for every single ordinary share currently held by a shareholder, they will receive an additional share. Consequently, the total number of issued shares of PEGASUS HOTELS OF CEYLON PLC will increase from the current 42,210,470 ordinary shares to 84,420,940 Ordinary Shares. The rights attached to these new shares will be identical to those of the existing shares, ensuring that the relative voting and distribution rights of ordinary shareholders remain unaffected.
EGM and Key Dates for Investors
Shareholder approval for this sub-division will be sought at an Extraordinary General Meeting (EGM) scheduled for Friday, September 11, 2026, at 9:30 a.m. The meeting will take place at the Auditorium, Ground Floor, The Ceylon Chamber of Commerce, No. 50, Nawam Mawatha, Colombo 02, Sri Lanka. Shareholders unable to attend in person may appoint a proxy, with the deadline for proxy submission set for 4:45 p.m. on Wednesday, September 09, 2026.
Following the EGM, several crucial dates have been set:
- Record Date/Entitlement Date: Tuesday, September 15, 2026 (the 2nd Market Day from and excluding the EGM date). Shareholders holding shares as of the end of trading on this date will be entitled to the sub-divided shares.
- Dealing Suspension: Trading in the company’s shares will be suspended for five market days, from Monday, September 14, 2026, to Friday, September 18, 2026. This period is necessary for updating the share register and the records of the Central Depository Systems (Pvt) Ltd (CDS) to reflect the sub-division.
- Re-commencement of Trading: Dealing in the sub-divided shares will re-commence on Monday, September 21, 2026.
Compliance and Shareholder Information
The company confirmed that the sub-division process is fully compliant with Article 15(2) of its Articles of Association, the Companies Act, No. 07 of 2007, and the CSE’s “Procedure to be Adopted by Listed Entities when Increasing the Number of Shares by Way of a Sub-Division of Shares Without a Change to the Stated Capital” which came into effect on June 09, 2026. The concurrence of the Colombo Stock Exchange for this sub-division was obtained on Wednesday, August 12, 2026.
For shareholders holding shares through CDS accounts, the new shares will be directly uploaded to their respective accounts prior to the re-commencement of trading on September 21, 2026. Shareholders who do not currently have CDS accounts are strongly encouraged to open one before the EGM date, in line with the Securities and Exchange Commission of Sri Lanka (SEC) Circular No. 08/2010. For such shareholders, the sub-divided shares will be registered in the company’s share register, but no physical share certificates will be issued, and existing certificates will be deemed invalid post-sub-division.
For additional details or assistance, shareholders may contact the Company Secretaries, Carsons Management Services (Private) Limited, or the Corporate Solutions Unit of the CDS on telephone no. +94 112 356 444 or email registrars@cse.lk.
This share sub-division by Pegasus Hotels is expected to significantly enhance the liquidity and marketability of its stock, potentially attracting greater investor interest in the hospitality sector on the CSE.
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