Singapore's Straits Trading moves towards hotels exit
SINGAPORE Nov 26 (Reuters) - Singapore's Straits Trading Co has signed non-binding agreements that may lead to the sale of most of its hotel operations to the Far East Organization property group, the companies said on Monday.
Two subsidiaries of Far East Organization aim to buy separate parts of Straits Trading's hotels portfolio.
Straits Trading, which also has tin mining and property development businesses, said the planned sales would help it to focus on operating as a holding company.
Far East Hospitality Trust, which owns hotels and residential serviced apartments in Singapore, intends to buy the 298-room Rendezvous Grand Hotel Singapore, partnered by sister subsidiary Astor Properties.
Property firm Far East Orchard Ltd, meanwhile, aims to buy 50 percent stakes in three Australian hotels owned by Straits Trading.
None of the companies provided an indicative price for the mooted deals.
Straits Trading would subsequently hold a 20 percent stake in a hospitality management business that will be set up through the merger of the hotel management arms of Far East Organization and Straits Trading.
(Reporting by Kevin Lim; Editing by David Goodman)
- Australia leads southern search for missing Malaysian plane |
- Crimeans vote over 90 percent to quit Ukraine for Russia |
- France bans Monsanto GM maize ahead of sowing season
- Ukraine, Russia agree Crimea truce until March 21-Ukraine minister
- Shares hit as Crimea vote to spur sanctions against Moscow |