KUALA LUMPUR: In a bid to widen the porftolio of its hospitality business in China, TA Global Bhd (TAG) has proposed to acquire the hotel and business of five-star Swissotel Kunshan in China for US$60.75 million (RM185.5 million) cash.
In a filing to Bursa Malaysia on Monday, Dec 31, the group said its unit Swiss Liberty Sdn Bhd had entered into a sale and purchase of shares agreement on Jan 28 with Kingdom Hotel Investments to acquire the latter's entire equity in Kingdome Kunshan Ltd (KKL).
KKL wholly owns First Shanghai Hotel Group (FSHG) and Sino Dragon Asset Ltd, which in turn own 65% and 35% stakes respectively in Kunshan Mamlaka Hotel Company Ltd, which is the registered owner of Swissotel Kunshan.
The hotel stands at 22 storeys and comprises 387 guest bedrooms, including 26 suites. It has a gross floor area of 37,218 sq m and is built atop a parcel of leasehold commercial (service ) land 8,422 sq m wide.
Located in the city centre of Kunshan, along the western edge of Kunshan Economic and Technological Development Zone, the group hopes to tap into the economic prospects of the area.
TAG said the acquisition would boost its hospitality operations in major cities worldwide, besides expanding its operations in China.
"In addition to that, TAG believes that the proposed acquisition will provide steady revenue stream and enhance the revenue contribution from its hospitality division to the group," it added.
The group will fund the acquisition through a mix of internally-generated funds and bank borrowings.
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