ASAP sold hotels to sponsor ahead of IPO to gain transaction certainty: EHT

Singapore

ASSET management firm ASAP sold six hotels to Eagle Hospitality Trust's (EHT) sponsor ahead of EHT's initial public offering (IPO) to gain transaction certainty independent of the IPO process, said EHT.

The trust was responding to queries from the Singapore Exchange (SGX), which questioned the rationale for the sale to be conducted in such a manner, as opposed to a direct sale of the hotels to the trust. In a filing to the bourse on Saturday, EHT said: "ASAP is independent from the sponsor and the managers. ASAP sold the ASAP6 portfolio to the sponsor prior to the IPO in order to gain transaction certainty independent of the IPO process."