Anilana (ALHP) investor to make mandatory offer at 18% premium

June 28, 2018 (LBO) – The Securities and Exchange Commission of Sri Lanka (SEC) has approved investment into Anilana Hotels and Properties (ALHP)  by Singapore based SOMAP International.

The investment by way of private placement will result in an infusion of Rs667mn (US$4.2mn) into the company at Rs1.3/share.  After the private placement SOMAP will own 51% of CSE listed ALHP.

After execution of the private placement SOMAP will be required to make a mandatory offer to all other shareholders of ALHP at Rs1.3/share.  This price is currently 18% above where the stock is currently trading at Rs.1.1.

It is yet to be disclosed if ALHP major shareholder Asanga Seneviratne and related parties intend to sell into the mandatory offer.  The CSE disclosure today states that further announcement will follow on July 2nd, after allotment of the private placement shares is complete.

The company went public in a 2013 Colombo Stock Exchange IPO at an offering price of Rs12/share.  Original investors are therefore sitting on losses close to 90%.