Singapore’s Somap to inject fresh capital to indebted Anilana Hotels

„Somap International to invest in 51% Anilana stake at Rs1.3 per share via new equity „Anilana says fresh capital will be used to settle debt, complete existing projects

The indebted Anilana Hotels & Properties PLC said yesterday that Singaporebased Somap International Pte. Ltd. is currently carrying out a due diligence on the company to acquire 51 percent of its capital by way of an issue of new shares.

Accordingly, Anilana Hotels plans to issue 513.4 million new shares to Somap International at a price of Rs.1.30 a share, with a total investment value of Rs.667.5 million. The due diligence is being carried out by Indian Ocean Group Ptd. Ltd. on behalf of Somap International.

Anilana Hotels said the sale of shares to Somap International will be carried out subject to obtaining approvals from the shareholders, the Securities and Exchange Commission and the Colombo Stock Exchange.

The fresh capital stemming from the deal will be used to settle debts and complete existing projects, Anilana Hotels said. According to Bloomberg, Somap International Pte. Ltd. purchases and sells ships for ship-owners and brokers. Its services include ship sales and purchase for demolition, ship operation, and ship breaking.

The company sells ships to ship-breakers in India, Bangladesh, Greece, China, Turkey, and Pakistan.

Somap International Pte. Ltd. was incorporated in 1997 and is based in Singapore with a yard in Bhavnagar, India. It has additional offices in the United Kingdom, Hong Kong, India, Bangladesh, and South Korea.

Anilana Hotels last week said it was negotiating with Sampath Bank PLC to settle its loans in default, after the bank gave notice that Anilana’s mortgaged lands would be auctioned off. Notices given by Sampath Bank last week stated that Anilana had defaulted on four loans totalling Rs.1.32 billion, while the total interest accumulated on the loans amounted to a further Rs.1.27 billion.

Sampath Bank said it has commissioned licensed auctioneer Schockman and Samarawickrama to sell the four mortgaged properties in Nilaveli, Vakarai and Passikkudah to recover the loans, interest and other costs related to the loans, minus any repayments. Anilana’s balance sheet, as at March 31, 2017, listed Rs.1.23 billion in non-current borrowings and Rs.507.86 million in current borrowings. A further Rs. 253.17 million was listed under bank overdrafts.

The firm’s properties were valued at Rs.4.09 billion, while it had Rs.939.40 million in investment property holdings. The company amassed Rs.1.71 billion in accumulated losses. Net losses for FY17 amounted to Rs.305.05 million, up from Rs. 243.11 million in 2016. Anilana has not made annual profits ever since it went public in 2013.