Mulpha sells entire stake in London hotel for RM190m

• The sale was completed on Oct 24, Mulpha noted. It expects a net gain of £18.7 million (RM105.3 million) from the sale, after deducting all incidental costs.

KUALA LUMPUR (Oct 27): Mulpha International Bhd (KL:MULPHA) has sold its entire 33% stake in the London Marriott Hotel for £33.8 million (RM190.3 million) to fund working capital requirements and venture into new investments.

Mulpha, a property developer and hospitality group, together with its fellow shareholders in New Pegasus Holdings Ltd inked a deal to sell their entire stakes in the company to MGS Acquisition Ltd for a total of £102.3 million (RM575.9 million), an exchange filing on Monday (Oct 27) showed.

The sale was completed on Oct 24, Mulpha noted. It expects a net gain of £18.7 million (RM105.3 million) from the sale, after deducting all incidental costs.

The group said the disposal will strengthen its cash flow position and is in line with its strategy and investment philosophy. Proceeds from the sale will fund working capital and future investments of the group within the next two years.

Mulpha acquired the stake in New Pegasus for £21.34 million, based on the prevailing exchange rate at the time, back in February 2014. Between Feb 2014 and Sept 2021, Mulpha had invested a total of RM127.82 million in New Pegasus.

The company owns the London Marriott Hotel at 10-13 Grosvenor Square and 84 Duke Street, London.

For the financial year ended Dec 31, 2024 (FY2024), New Pegasus posted a net profit of £2.28 million (RM12.82 million) on a revenue of £33.15 million (RM186.62 million). Net assets stood at £47.12 million (RM265.26 million).

The other shareholders in New Pegasus included Proven Success Trading Ltd (52%), Constanza Global Ltd (10%) and New Front Holdings Ltd (5%).

The buyer, MGS Acquisition, is owned by Spartan Advisors Ltd, a luxury hotel investment management firm.

Shares in Mulpha closed one sen or 0.33% higher at RM3, valuing the group at RM933.53 million.

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