Controlling stake of Anilana Hotels to be bought by Singaporean company
Through the means of a “private placement“ 51% controlling shares in Anilana Hotels and Properties Plc will be purchased for LKR 667.4 million by Somap International Ltd, Singapore.
According a Board Resolution taken by Anilana LKR 559.2 million of the purchase price would go towards debt settlement, with the remaining LKR 108.3 million being allocated for working capital. Anilana’s current borrowings stand at LKR 422 million with a further LKR 1.3 billion in non-current borrowings.
513.443 million shares will be issued at LKR 1.30 per share for the private placement, whilst the net asset value per share of is LKR 5.80.
Anilana’s current stated capital of 493.3 million shares is valued at LKR 3.86 billion of which Somap will acquire 51% through the private placement.
In order for the private placement to be carried out, the Securities and Exchange Commission (SEC)needs to issue a waiver as per exceptional circumstances in terms of the Colombo Stock Exchange (CSE) Rule 5.4 b as well as receiving CSE approvalconcerning in principle and shareholder approval. In June 2017 Anilana initially announced the possibility of such move in order to enhance the company’s capital. Later it was announced that Somap’s advising agent, Indian Ocean Group Ltdhad begun negotiations as Somap’s representatives and on deciding to go ahead with a private placement to acquire the 51% controlling stake after making a capital investment, a thorough due diligence process was initiated.
35% of Anilana’s shares are controlled by its Managing Director, Asanga Seneviratne as of now.
OSL TAKE:
This move proves that there is investor confidence in Sri Lankan companies, especially in the expanding tourism sector, where foreign parties can make successful investments and have a guaranteed control and ownership over it through such share transfer methods.
| Article Code : | VBS/AT/06102017/Z_4 |