Monday, 31 January 2011

TA Global Acquires Hotel Business In Kushan, China

TA Global Bhd's (TAG) wholly-owned Swiss Liberty Sdn Bhd, has signed a sale and purchase of shares agreement with Kingdom Hotel Investments to acquire the hotel and business of Swissotel Kunshan in Kunshan, China.

This was done via the purchase of the entire issued shares of Kingdom Kunshan Ltd (KKL) of 4.031 million shares of US$1 each for a cash consideration of RM185.500 million. (US$1=RM3.0535), the company said in a filing to Bursa Malaysia.

KKL owns 100 per cent of the equity of First Shanghai Hotel Group (FSHG) and 100 per cent of the equity of Sino Dragon Asset Ltd (SDAL) which in turn owns 65 per cent and 35 per cent, respectively, of the equity of Kunshan Mamlaka Hotel Company Limited, a China incorporated company, which is the registered owner of the hotel property and business.

The hotel, rated a 5-star with 387 guest bedrooms, is prominently located in the city centre of Kunshan, along the western edge of Kunshan Economic and Technological Development Zone.

TAG said the proposed acquisition would be funded from internally-generated funds and external borrowings.

Meanwhile, the original cost of investment in the hotel was US $59.3 million.

In the statement, TAG said the proposed acquisition would further enhance the company's hospitality operations in major cities worldwide and expand its existing hospitality properties portfolio in China.

It will also provide a steady revenue stream and enhance revenue contribution from its hospitality division to the company.

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