Singapore firm plans to inject Rs. 667 m in Anilana Hotels and Properties for 51% stake

Anilana Hotels and Properties Plc (ALHP) yesterday announced plans to sell 51% stake in the company to Singapore-based Somap International Pte Ltd. for Rs. 667 million.

ALHP said it is currently in discussion with Indian Ocean Group Pte Ltd. on behalf of its advisory client partner Somap International Pte Ltd. to invest up to 51% of the capital by way of an issue of new shares with a total value of Rs. 667.4 million for 513.44 million shares at Rs. 1.30 each subject to shareholder and regulatory approvals.

ALHP is seeking infusion of fresh capital to reduce borrowing and complete existing projects of the company.

Post-announcement, ALHP’s shares closed yesterday at Rs. 1.70, down by 30 cents. Net asset value per share is Rs. 5.98, down from Rs. 7.90 in FY16.

ALHP said Indian Ocean has by its letter dated 22 June 2017 informed the company that Somap or its nominees have committed to an investment in the company to facilitate part settlement of existing loans and projects facilities.

ALHP is facilitating Indian Ocean to carry out due diligence on the company.

Somap International Pte Ltd. was formed in Singapore in 1997 as a shipping and trading company, primarily to deal in old ships for recycling. Somap is one of the world’s selected cash buyers, catering to the Indian, Bangladeshi, Pakistani, Chinese and Turkish markets, thus practically covering all recycling destinations.

Over the years Somap has extended its presence to various business fields covering India, Singapore, South Korea, the UK and Malaysia with interest ranging from shipping to commodity trading, real estate, hospitality, e-commerce, industry, pharmaceuticals and the dairy and retail business.

Anilana has three luxury resorts in Pasikudah, Nilaveli and Nuwara Eliya.

For the year ended 31 March 2017, ALHP posted a group operating loss of Rs. 100 million, lower than the Rs. 153 million in the previous year. Pre-tax loss however increased to Rs. 305 million from Rs. 243 million with finance cost rising to Rs. 205 million from Rs. 144 million in FY16.

Retained loss at the group level is Rs. 1.7 billion, up from Rs. 1.4 billion.

It has long-term borrowings of Rs. 1.2 billion at the group level (company Rs. 795 million) and short-term borrowings of Rs. 508 million (company Rs. 360 million) along with Rs. 253 million in bank overdraft (company Rs. 161 million).