COLOMBO, Sri Lanka – 11 September 2026 – Shareholders of Pegasus Hotels of Ceylon PLC (CSE: PEG) today overwhelmingly approved an ordinary resolution at an Extraordinary General Meeting (EGM) to sub-divide the company’s ordinary shares. The decision, announced following the EGM held on 11th September 2026, will see each existing ordinary share split into two, effectively doubling the total number of shares in issue.
The resolution, which was first outlined in the Notice convening the EGM dated 25th August 2026, received the necessary mandate from shareholders, signaling a strategic move for the hospitality sector entity listed on the Colombo Stock Exchange (CSE).
Details of the Share Sub-Division
According to the announcement made to the Colombo Stock Exchange, the approved ordinary resolution entails the following key points:
- Share Split Ratio: Every one (01) existing ordinary share held by each shareholder will be sub-divided into two (02) ordinary shares.
- Increase in Total Shares: The total number of ordinary shares in issue will increase from the current forty-two million two hundred and ten thousand four hundred and seventy (42,210,470) shares to eighty-four million four hundred and twenty thousand nine hundred and forty (84,420,940) shares.
- Shareholder Rights Unaffected: The shares resulting from the sub-division will carry the same rights as the existing shares. Critically, this sub-division will not impact the relative voting or distribution rights of the ordinary shareholders.
- Stated Capital Remains Constant: The existing Stated Capital of the Company, valued at Sri Lanka Rupees Seven Hundred and Fifty-One Million Five Hundred and Forty-Eight Thousand Three Hundred and Twenty-One and Cents Fifty Only (Rs. 751,548,321.50), will remain unchanged.
- Record Date: The sub-division will be based on the shareholding as at the end of trading on the Record Date/Entitlement Date, which has been set for Tuesday, 15th September 2026. This date is the 2nd Market Day from and excluding the EGM date, in line with CSE regulations.
Implications for Investors and the Market
A share sub-division, often referred to as a stock split, typically aims to increase the liquidity of a company’s shares and make them more accessible to a broader base of investors by reducing the per-share price. While the total value of a shareholder’s investment remains the same immediately after the split, the increased number of shares at a lower price point can enhance market appeal and trading activity.
Pegasus Hotels of Ceylon PLC, a prominent name in Sri Lanka’s hospitality industry, operates one of the island’s well-known hotels. This move to sub-divide shares could be seen as a strategic step to improve market engagement and potentially attract new investors amidst the evolving economic landscape and recovery of the tourism sector.
The company’s secretaries, Carsons Management Services (Private) Limited, officially communicated the EGM’s outcome to Ms. Nilupa Perera, Chief Regulatory Officer of the Colombo Stock Exchange.
Source: Read original document
