KUALA LUMPUR (Feb 27): The Defence Ministry (Mindef) has clarified that Boustead Holdings Bhd has yet to dispose of the Royale Chulan Bukit Bintang Hotel, saying the valuation process is still underway.

This follows Boustead’s announcement on Feb 19 that its wholly-owned subsidiary Boustead Hotel & Resorts Sdn Bhd has accepted an offer from Singapore-based Hotel Royal Ltd to buy the hotel for RM197 million.

Boustead, which is owned by the Armed Forces Fund Board (LTAT), made the announcement in a filing to Bursa Malaysia.

“Mindef wishes to clarify that the sales process for the Royale Chulan Bukit Bintang Hotel is yet to be concluded,” the ministry said in a statement today.

It added that the valuations are still ongoing, in light of the hotel’s strategic location as one of the main tourist spots and hotel zones in the centre of Kuala Lumpur.

“Therefore, the best offers from interested buyers are being considered, with priority being given to local companies,” Mindef added.

*Boustead accepts offer to sell Royale Chulan Bukit Bintang for RM197m

Last December, The Edge Malaysia Weekly, quoting a Boustead spokesman, reported that the company was seeking bidders for the 21-year-old hotel which occupies two parcels of freehold land, measuring 3,189 square metres.

In its Feb 19 filing, Boustead said Hotel Royal was granted a one-month exclusivity period to conduct due diligence on the hotel, as stipulated in the letter of offer, Additionally, Boustead agreed to refrain from providing responses, other than rejections, to other enquiries and offers from other bidders during the one-month exclusivity period.

Hotel Royal had also paid RM3.94 million as a 2% earnest deposit on the sale price, Boustead said. If the sale and purchase agreement is not executed, the earnest deposit would be fully refunded to Hotel Royale within a fortnight from the date of its written refund demand to Boustead.

Boustead’s share price was down two sen or 1.35% at RM1.46 just before the close of trading today. 

— theedgemarkets.com

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