SEC clears Rs.667.5mn Anilana private placement deal

The Securities and Exchange Commission (SEC) has cleared a private placement deal the troubled Anilana Hotels & Properties PLC was trying to enter into with Singapore-based Somap International Private Limited, since last year.

Anilana will issue 513.4 million new shares to Somap at Rs.1.30 a share, to raise Rs.667.5 million. In return, Somap International will receive a 51 percent stake in Anilana.

The Anilana share last traded at Rs.1.10 on the Colombo bourse. But Anilana’s net asset value per share was Rs.5.35 as at March 31, 2018 and hence, the deal offers an upside to Somap International, which is engaged in the business of sales and purchasing ships for demolition. Anilana in a shareholder circular this February said out of the Rs.667.5 million raised through the private placement, Rs.527.7 million would be utilized to settle the borrowings and Rs.139.8 million would be utilized as working capital.

As at March 31, 2018, Anilana had racked up as much as Rs.2 billion in accumulated losses and had total current liabilities over Rs.1.5 billion. 

Anilana said, following the private placement deal, Somap International would announce a mandatory offer in terms of the obligations under the Company Takeovers and Mergers Code, for the remaining 493.3 million shares, at Rs.1.30 per share. As at March 31, 2018, Anilana Managing Director Asanga Seneviratne held a 24.3 percent stake in the company.