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Hotel Properties Limited to acquire additional shares in subsidiary and associated company
HOTEL Properties Limited (HPL)'s wholly-owned subsidiary HPL Properties (SEA) has entered into a share purchase agreement with ISY Holdings to acquire 11.25 million shares, representing 50 per cent interest in the capital of Palmco Hotels, and 100,000 shares, representing 10 per cent interest, in the capital of HRH Merchandise, for a total consideration of 105 million ringgit (S$34.7 million).
Prior to the share acquisitions, HPL Properties (SEA) owned 50 per cent interest in the equity of Palmco Hotels and 90 per cent interest in the equity of HRH Merchandise.
The total paid-up capital of Palmco Hotels is 22.5 million ringgit and the total paid-up capital of HRH Merchandise is one million ringgit.
Palmco Hotels owns Hard Rock Hotel Penang with 250 rooms together with its trademark "Hard Rock Café" and facilities located at Batu Ferringhi, Penang in Malaysia. The principal activity of HRH Merchandise is trading in souvenirs, momentos, gifts, clothing, apparels and accessories.
The share acquisitions are funded by internal resources and are expected to increase the earnings per share of the HPL Group from 18.13 Singapore cents to 20.18 Singapore cents, but are not expected to have any significant impact on the net tangible assets per share.