Sri Lanka’s stock exchange says Anilana Hotels finalizes deal with investor for a capital infusion

Sri Lanka’s stock exchange says Anilana Hotels finalizes deal with investor for a capital infusion

Sri Lanka’s Colombo Stock Exchange (CSE) has reportedly listed that Anilana Hotels and Properties (ALHP) has finalised a deal with investor SOMAP for an infusion of capital.
According to a CSE filing reported in the local media, 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.
Anilana has now become a subsidiary of SOMAP, and two of its appointees have immediately joined the board of directors.
A mandatory offer at Rs.1.3/share is expected to be made to all other shareholders of ALHP, reports state.
ALHP was previously controlled by businessman Asanga Seneviratne and family and had run into financial difficulty as they had spent billions to construct luxury hotels on Sri Lanka’s east coast.
The capital infusion and new controlling shareholder is expected to make the company able to de-lever and restructure its way to profitability.

OSL take:

The capital infusion received by Anilana Hotels and the development of the hotels under the chain is a direct result of the continuous growth in Sri Lanka’s tourism sector. There are many investments entering into Sri Lanka’s tourism sector and the continuous increase in tourist arrivals to the country would further make investments in the island’s tourism sector more attractive to foreign businesses/investors. Foreign companies/investors could now explore for investment opportunities in Sri Lanka’s tourism sector, especially in the fields of leisure and hospitality.

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Article Code : VBS/AT/08082018/Z_2

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