You are here

HPL to acquire Dutch firm that indirectly owns Langkawi resort for US$55m

HOTEL Properties Limited's (HPL) associate company Leisure Ventures plans to acquire Netherlands-incorporated Kingdom Langkawi BV (KLBV), which in turn indirectly owns the Four Seasons Resort Langkawi, for an aggregate consideration of US$55 million.

The consideration for the acquisition comprises US$1 million for the shares of KLBV and some US$54 million for the assignment of shareholder loans, which is subject to net working capital adjustments, said HPL, adding that the investment will be funded by internal resources.

A deposit of US$9 million will be paid on the date of the sale and purchase agreement.

The luxury resort located on the Langkawi island in the north-western coast of Malaysia is owned by Mamlaka Langkawi, which in turn is wholly owned by KLBV, while HPL's managing director and deemed substantial shareholder Ong Beng Seng is deemed to be interested in the remaining 50 per cent of Leisure Ventures.

sentifi.com

Market voices on:

An independent market valuation of the resort commissioned by Leisure Ventures conducted in February 2017 had valued the resort at RM400 million (S$128.4 million), said HPL.

Based on the latest available management accounts of KLBV as at end-2016, its net tangible asset stood at some US$36 million.

After the acquisition, KLBV and Mamlaka will become HPL's indirect associate companies.

Powered by GET.comGetCom