September 9, 2018 (LBO) – Colombo Stock Exchange listed Anilana Hotels (ALHP) continued to struggle losing Rs84mn in the quarter ended June 30, 2018. The company has struggled since inception with a cumulative Rs2.1bn in retained losses since inception a few years ago.
The company owns hotels in the east coast of the island that are yet to be connected to the country’s highway infrastructure. Therefore despite having some of the best beaches on the island, new east coast hotels, which made significant investments after the war, have suffered significant losses.
After the reporting period, Singapore company SOMAP infused close to Rs700mn into the company in exchange for a 51% stake. The funds will be used for working capital and reduction of debt.
With this transaction noted entrepreneur and business personality Asanga Seneviratne has relinquished control over the company with many market participants expecting him to sell his entire shareholding into the required mandatory offer SOMAP makes to all other shareholders of ALHP.