SOMAP makes mandatory offer on Anilana Hotels

SOMAP International Ltd. has announced the mandatory offer of Rs. 1.30 per share to the minority shareholders of Anilana Hotels and Properties PLC.

This was pursuant to the allotment by way of a private placement of 51% stake, amounting to 513.4 million shares at Rs. 1.30, by the AHPL Board on 3 August to SOMAP, a company incorporated in Singapore, for Rs. 667.47 million. The offer is to shareholders owning 493.3 million shares or 49% stake. 

However, five existing shareholders, including Asanga Seneviratne and related parties Manjula Seneviratne (20 million shares each), GMO Emerging Market Funds (104 million shares), holding a total of 156 million shares have indicated they will not accept the offer.

SOMAP was formed in 1997by Dinesh Pandey, who has extensive trading and managerial experience is founder/chairman of SOMAP Group which has diversified interests ranging from shipping to hospitality. It has offices in London, Hong Kong, South Korea and Bangladesh apart from existing offices at Singapore and India. The Group’s presence in India is involved in activities such as ship sales and purchase, real estate, hospitality, construction, and ecommerce. The Group has made substantial investments in hospitality sector is focusing to expand in it. SOMAP enjoys excellent relations and has tied up with brands such as Marriott and Hyatt. It has also tied up with JW Marriott for its Maldives operations, where it has a 61 room high end resort.Its hospitality arm is Sarv International Singapore and has exposure from India to Maldives to Mali.

As per the Mandatory Offer document, it would add much value to AHPL, as hospitality is one of the key business of the Group.Its investment in Anilana would be a strategic investment and part of their expansion plant. With brand tie ups like Marriott and Hyatt and a strong management/hospitality team, it would bring immense value to Anilana and help in revival, states the offeror in the offer document. In the financial year ended 31 March 2017 (unaudited), SOMAP revenue was SGD 177.58 million and net profit was SGD 101 million, up from SGD 66 million in FY15.

Views, comments and advice on the offer by Anilana Board along with advice given by independent advisor is pending.