Mandarin Oriental Internationalís 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 groupís partner in the hotel, Shun Tak
Holdings, will sell its 50% equity interest to STDM at the same
Completion of the sale is expected by the end of
May 2009. The sale is conditional upon approval of the
arrangements by Shun Takís and STDMís 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 groupís 50% interest in the hotel as at
31st December 2007 was US$15.7 million and its contribution to the
Groupís 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
groupís 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 siteís 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.
other recent news regarding: