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© getforme.com
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Source:
www.raffles.com |
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Raffles Holdings to divest
Hotel Business for an enterprise value of S$1.72 billion, a 64%
premium to NTA, unlocking significant shareholders¡¯ value |
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The Board of Raffles Holdings
Limited (¡°RHL¡±) today announced that RHL has entered into a definitive
agreement to divest its Hotel Business (¡°Transaction¡±) to Colony HR
Acquisitions LLC, an affiliate of Colony Capital LLC for an enterprise
value of S$1.72 billion, subject to adjustments upon completion. |
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The key terms of the Transaction are :- |
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- divestment at
implied enterprise value of S$1.72 billion
- aggregate
consideration of S$1.45 billion in cash
- gain on divestment
of S$605 million
- 64% premium to the
Hotel Business¡¯ NTA
- gross proceeds of
69 cents per RHL share
- unlock significant
shareholders¡¯ value |
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- A special dividend of 40 cents per share to RHL¡¯s
shareholders from proceeds is proposed (aggregating to approximately
S$816 million). |
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- The Transaction is subject to shareholders¡¯ approval
at an Extraordinary General Meeting to be convened. CapitaLand, the
59.7% shareholder of RHL, has given an irrevocable undertaking to vote
in favour of the Transaction. |
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- After completion of the Transaction, RHL continues to
hold its 45% direct equity interest in Tincel Properties which owns the
Raffles City Complex. Tincel Properties generated a total operating
profit of S$96.3 million in FY2004. |
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STRONGER PLATFORM FOR FURTHER GROWTH |
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¡°The Hotel Business has made significant
progress in delivering growth and strong operating performance since the
successful implementation of the strategic repositioning plan in April
2003. With the Transaction, the Hotel Business will complement Colony
Capital¡¯s larger global portfolio of hotels which will provide an even
stronger platform for further growth and development. |
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After the Transaction, Raffles Holdings will
continue to have strong earnings from its interest in Tincel Properties
and a strong balance sheet to fund future growth and development.¡± |
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Jennie Chua, President & CEO, Raffles
Holdings Limited |
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ANOTHER SUCCESS IN UNLOCKING SIGNIFICANT
SHAREHOLDERS¡¯ VALUE |
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¡°This transaction will create and unlock a
very significant amount of value for RHL¡¯s shareholders as evidenced by
the large estimated gain on divestment of S$605 million. Furthermore,
the substantial aggregate consideration of more than S$1.4 billion ¨C
equivalent to 69 cents per share ¨C provides RHL with the ability to not
only return a large amount of capital to all its shareholders by the
special dividend, but also to retain a substantial amount of capital and
gearing capacity for re-investment into higher yielding assets for
future business growth. |
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The CapitaLand Group is committed to achieve
the best returns for our shareholders. By focusing on continuous active
balance sheet and capital management across all our businesses, the
Group¡¯s prime objective is to enhance capital productivity and maximize
shareholder returns. |
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CapitaLand¡¯s consolidated financial results
will benefit substantially from this transaction by virtue of its
approximately 59.7 percent interest in RHL. The Group intends to
re-invest the proceeds into higher growth businesses to increase ROE
performance. |
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The CapitaLand Group, into its fifth year of
operations, is committed to maintain its growth momentum going forward
for the benefit of our shareholders.¡± |
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Liew Mun Leong, Deputy Chairman,
Raffles Holdings Limited and President & CEO of CapitaLand Group (major
shareholder of Raffles Holdings) |
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More..... |
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Source:
www.raffles.com News Release 18 Jul
2005 |
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Raffles Hotel to be sold to US-based investment fund
