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Mandarin Oriental to Sell Equity Investment in Macau Hotel

Search ASIA Travel Tips .com Latest Travel News Send to Friend Wednesday, 21 January 2009

Mandarin Oriental International’s wholly-owned subsidiary, Mandarin Oriental Holding Company, has entered into an agreement to sell its 50% interest in the Mandarin Oriental, Macau to Sociedade de Turismo e Diversoes de Macau (STDM).

 The group’s partner in the hotel, Shun Tak Holdings, will sell its 50% equity interest to STDM at the same time.

Completion of the sale is expected by the end of May 2009. The sale is conditional upon approval of the arrangements by Shun Tak’s and STDM’s respective shareholders as well as other regulatory formalities.

The agreed value of the 416-room hotel, for the purposes of the transaction, is HK$1.6 billion (US$205 million). The carrying value of the group’s 50% interest in the hotel as at 31st December 2007 was US$15.7 million and its contribution to the Group’s EBITDA in 2007 was US$10.2 million.

On completion of the sale of its 50% interest, the group will receive proceeds of approximately US$90 million with a post tax gain of approximately US$75 million, which will be recognized in 2009. The proceeds will be applied towards the group’s general corporate purposes.

As part of the agreement to sell, MOHCL and Shun Tak have the right to participate equally in any increase in the hotel site’s value, over and above the agreed value of HK$1.6 billion (US$205 million), which might arise if the property were to be redeveloped or sold to a third party in the future.

See other recent news regarding: Airlines, Aviation, Flights, Hotels, Promotions, New Hotels, Free Deals, Cruises, Macau, Mandarin Oriental, Shun Tak

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