You are here
Datapulse Technology to seek shareholders' approval to expand into hotel business
DATAPULSE Technology has entered into a non-binding letter of intent (LOI) with a South Korean company for the proposed acquisition of a hotel in Seoul.
The LOI gives Datapulse exclusivity to conduct due diligence on the deal, and the proposed acquisition is subject to it being satisfied with the results of the due diligence, Datapulse said on Wednesday.
The target hotel is located near the Myeongdong district, and the seller is a private company incorporated in South Korea, owned by Korean individuals. No further details were given, with Datapulse citing confidentiality agreements.
Datapulse's board said that it believes that the proposed acquisition will provide the company with an additional and recurring revenue stream.
Going forward, the group intends to focus on the acquisition or investment in hotels or hospitality assets, and will seek shareholders' approval to expand its property business mandate via an extraordinary general meeting.
Datapulse said that it does not plan to provide hotel or hospitality management services as part of its expanded business mandate, and will engage third party service providers to do so.
It noted that chairman and a substantial shareholder Aw Cheok Huat also controls ICP, a company engaged in the hotel and hospitality sector. ICP owns a hotel in Kuala Lumpur previously known as Geo Hotel which was rebranded to Travelodge Central Market, and ICP’s focus is on third party hotel management.
If any interested party transactions arise, Mr Aw will recuse himself and abstain from any determination by the board on such transactions, Datapulse said.