@wisdom79 wrote:[size=32]Singapore’s Somap to buy controlling stake of Anilana Hotels for Rs.667mn[/size]
Singapore-based Somap International Private Limited will invest Rs.667.5 million in Anilana Hotels & Properties PLC in return for a 51 percent stake in the debt-ridden company subject to regulatory and stock exchange approvals, the company said in a stock exchange filing.
The deal was first announced by the company in late June which said that Somap International was conducting a due diligence on the hotel company which has never made a profit since going public in 2013.
The company has accumulated losses of Rs.1.79 billion and had a total debt of little above Rs.2.0 billion by the end of June, 2017.
The proceeds will be used to settle Rs.559.2 million worth of borrowings and the balance Rs.108.3 million for working capital.
Anilana will issue 513.4 million shares at Rs.1.30 a share. The company’s share was 10 cents or 7.69 percent up yesterday to close at Rs.1.40.
Given Anilana’s net asset value per share of Rs.5.80 as of June this year, the deal offers an upside for Somap which engages in the business of sales and purchasing ships for demolition.
Anilana also has property, plant and equipment of Rs.4.0 billion and little under a billion rupee worth of investment properties.
Anilana owes up to 2.59 billion to Sampath Bank with accumulated interest and the bank this June gave notices to the company saying that it would auction four properties in Nilaveli, Vakarai and Passikkudah mortgaged to the bank to recover the loans.
But the company later said it was negotiating with the bank to reschedule the loans in default, probably with deferred repayment periods as by then the company was nearing a deal for a capital infusion.
Anilana Managing Director, Asanga Seneviratne holds around 35 percent stake in the company.
IF THIS INVESTMENT STORY IS TRUE WHY ASANGA SENAVIRATNE CONTINUED TO SELL HIS SHARES @ 1/10 EVEN AFTER JUNE,,, BE CAREFULL FRIENDS, CIFL ALSO CAME OUT WITH THIS KIND OF STORIES AND NOW WHAT HAPPEN, INNECENT RETAIL INVESTORS GOT COUGHT. GD