SINGAPORE, April 15 A consortium that includes
Singapore tycoon Ong Beng Seng and Wheelock Properties
(Singapore) Ltd offered on Tuesday to buy Hotel
Properties Ltd for S$3.50 per share, valuing the
company at around S$1.8 billion ($1.4 billion).
The move is the latest in a string of acquisitions in
Singapore by large shareholders seeking to take advantage of
what they see as attractive valuations to gain full control of
68 Holdings Pte Ltd had agreed to acquire nearly 214 million
shares in Hotel Properties, representing a 41.9 percent stake in
the company, at S$3.50 each, according to stock filings from
Hotel Properties and Wheelock Properties to the Singapore
Exchange. The group plans to make a cash offer for all the
remaining shares it does not own.
Shares of Hotel Properties surged as much as 13.1 percent to
S$3.54, their highest point in almost 11 months, while Wheelock
Properties jumped 5.4 percent to S$1.84 in early Singapore
68 Holdings is 60-percent owned by Cuscaden Partners Pte
Ltd, an investment holding company in which Ong, who is also
managing director of Hotel Properties, owns a 90 percent
interest and David Ban Song Long owns the rest.
The remaining 40 percent of 68 Holdings is held by Nassim
Developments, a unit of Wheelock Properties. Wheelock Properties
is part of Hong Kong-listed Wheelock & Co Ltd.
Ong, Ban and Wheelock have been long-term shareholders of
Hotel Properties and have decided to consolidate their
shareholding so they can "implement their shared objectives for
HPL and to enhance value over time," according to the filing.
Hotel Properties owns and operates hotels, and has
businesses in property development and investment holding. The
company has a portfolio of 28 hotels and resorts spread across
13 countries, according to its website.
The Hotel Properties offer comes a day after CapitaLand Ltd
, Southeast Asia's biggest property developer, said it
had bid S$3.06 billion ($2.45 billion) to buy out minority
shareholders in its 65-percent owned CapitaMalls Asia Ltd
(Reporting by Eveline Danubrata; Editing by Stephen Coates)