KUALA LUMPUR: 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 RM185.5mil, the company said in a filing to Bursa Malaysia.

KKL owns 100% of the equity of First Shanghai Hotel Group and 100% of the equity of Sino Dragon Asset Ltd which in turn owns 65% and 35%, respectively, of the equity of Kunshan Mamlaka Hotel Co Ltd, 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, along the western edge of Kunshan Economic and Technological Development Zone.

 
Swissotel Kunshan is a 5-star hotel located in the city centre.

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$59.3mil.

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. Bernama

Source : The Star