[SINGAPORE] Hospitality group Banyan Tree said on Friday (Mar 14) that the indirect subsidiary of its subsidiary – Laguna Resorts & Hotels Public Company – has bought over stakes in two resort investment and development companies from NSL Resorts International for S$5.5 million.
First, unit Laguna Banyan Tree has acquired an additional 39.2 per cent of Tropical Resorts, a Hong Kong-incorporated corporation in the business of resort investment and development.
This brings Laguna Banyan Tree’s interest in Tropical Resorts up to 65.1 per cent, from 25.9 per cent. Post-acquisition, Tropical Resorts is now an indirect subsidiary of Banyan Tree.
Second, Laguna Banyan Tree has acquired 13.5 per cent of Donvale, a corporation incorporated in the British Virgin Islands that engages in resort investment and development activities.
NSL Resorts International owned a 39.2 per cent stake in Tropical Resorts and 13.5 per cent stake in Donvale, respectively. The company is a subsidiary of integrated environmental services group NSL, which is listed on the Singapore Exchange.
Banyan Tree believes the share acquisitions will benefit the overall group, as this will lead to an increase of Laguna Resorts & Hotels Public Company’s offshore resort investments and development portfolio.
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The aggregate consideration of S$5.5 million was paid in cash, which was funded by internal resources.
The amount was determined following arm’s length negotiations between Laguna Banyan Tree and NSL Resorts International, which considered factors such as historical operating performance, existing market conditions and liquidity of Tropical Resorts and Donvale.
In relation to the share acquisitions, Laguna Banyan Tree and NSL Resorts International entered a deed of assignment, where the former was assigned an existing non-interest bearing loan – owed by Donvale to NSL Resorts International – for a nominal consideration of S$1.
The principal amount of the loan is about S$989,000.
The share acquisitions are not expected to result in any material impact to Banyan Tree’s consolidated net tangible assets per share or consolidated earnings per share for the current financial year.
Shares of Banyan Tree closed at S$0.355, down S$0.005 or 1.4 per cent on Friday, before the announcement.
