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Datapulse mulling purchase of Geo Hotel in Kuala Lumpur
DATAPULSE Technology on Monday said it has entered into a non-binding letter of intent with ICP Ltd to acquire MHI MY 1 Pte Ltd, a joint-venture company with an issued and paid-up share capital of S$1,500, and which is in the business of hotel investment.
The target subsidiary, through its wholly-owned Malaysian subsidiary, owns a mid-scale hotel in Kuala Lumpur, currently operating under the brand "Geo Hotel Kuala Lumpur". Upon the completion of a refurbishment programme, the hotel will debut as Travelodge Central Market, Kuala Lumpur.
Datapulse manufactures and sells media storage products used in content distribution.
It said that the proposed acquisition is part of the company's efforts to diversify its core business operations into the hospitality industry, specifically in relation to the business of hotel ownership, which it believes would have strong potential for growth.
"This is in line with the company's plan to expand into the property business to optimise returns for the company and its shareholders should suitable opportunities arise ...
"The board believes that the proposed acquisition will offer new business opportunities, provide the company with additional and recurrent revenue streams and improve its prospects, so as to enhance shareholders' value in the company."
The letter is intended to set out the preliminary framework for further discussions between the company and the seller and is not intended to be legally binding.