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KUALA LUMPUR (Nov 17): Debt-laden GuocoLand (Malaysia) Bhd said its 70%-owned Guoman Hotel & Resort Holdings Sdn Bhd (GNHR) is disposing of equity interests in PD Resort Sdn Bhd and JB Parade Sdn Bhd to its Singaporean counterpart, for RM223.89 million cash.
In a filing with Bursa Malaysia this evening, GuocoLand Malaysia said GNHR today signed the two conditional share sale agreements with GuocoLand Hotels Pte Ltd (GLH).
This includes the proposed disposal of the entire issued share capital of PD Resort comprising 100 million ordinary shares, and 28 million shares in JB Parade representing a 70% stake.
It also involves the sale of cumulative redeemable preference shares (CRPS) in JB Parade. Currently, GNHR holds 68.59 million CRPS in JB Parade at a book value of RM68.59 million.
PD Resort and JB Parade are both companies involved in property investment or development and hotel operations. They each own a five-star international hotel, Thistle, in Port Dickson and Johor Bahru.
In the filing, GuocoLand Malaysia said the indicative purchase prices were arrived at on a willing-buyer willing-seller basis, after taking into consideration the audited net asset of the two companies, book value of the CRPS, and market values of each Thistle hotel.
As at end-June, PD Resort has net assets totaling RM82.07 million, and JB Parade at RM24.68 million.
Meanwhile, the market values of Thistle Port Dickson and Thistle Johor Bahru stood at RM136 million and RM152 million respectively.
Post-disposal, GuocoLand Malaysia, being the 70% shareholder in GNHR, said it will receive RM154.11 million gross proceeds, which will be utilised for working capital purposes.
The proposed disposals are expected to be completed by the first half of 2018.
Singapore-based GLH and GuocoLand Malaysia are wholly-owned subsidiaries of Singapore Exchange-listed holding company, GuocoLand Limited. GuocoLand Limited holds the remaining 30% equity in GNHR.
At closing bell today, shares in Guocoland Malaysia slipped one sen or 0.85% to RM1.16, giving it a market capitalisation of RM812.53 million. — theedgemarkets.com
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