August 3, 2018 (LBO) – After several delays, Colombo Stock Exchange (CSE) listed Anilana Hotels and Properties (ALHP) has finalised a deal with investor SOMAP for an infusion of capital.
According to a CSE filing just released, ALHP has issued 513,443,555 ordinary shares, now amounting to 51% of the total shares outstanding of the company, to SOMAP international at a price of Rs1.3/share.
The company now becomes a subsidiary of SOMAP, and two of its appointees have immediately joined the board of directors.
A mandatory offer at Rs1.3/share is expected to be made to all other shareholders of ALHP. It is yet to be announced if Asanga Seneviratne and other connected parties will be tendering their shares.
ALHP, previously controlled by Asanga Seneviratne and family, had run into financial difficulty as they had spent billions to construct luxury hotels on Sri Lanka’s east coast. The properties were not connected to the highway infrastructure making transit times prohibitive to tourists. The company had endured painful losses for the last several years.
It is expected that with the capital infusion and new controlling shareholder, the company will be able to de-lever and restructure its way to profitability.