YTL Corp unit to acquire Niseko Village

KUALA LUMPUR: YTL Hotels & Properties Sdn Bhd (YTLHP) has entered into an acquisition agreement to acquire a new subsidiary based in Japan, said holding company YTL Corp Bhd in a March 8 Bursa Malaysia filing.

YTLHP had entered into the agreement with Japanese company PC One YK, its Delaware-based holding company Citigroup Financial Products Inc (CFPI) and PC One subsidiary Kinki Investments Corp YK to acquire Niseko Village KK from PC One.

The agreement was made in relation to the acquisition of 496,184 shares, representing 100% of the equity interest in Niseko Village from PC One, the full repayment of amounts owed to CFPI by Niseko Village as well as the purchase of certain properties owned by Kinki Investments by Niseko Village for a total of ¥6 billion (RM221.94 million), subject to the terms and conditions of the proposed acquisition.

Niseko Village will become a unit under YTLHP and an indirect wholly-owned subsidiary of YTL Corp after the completion of the proposed acquisition.

According to YTL Corp, the proposed acquisition will allow the group to gain a foothold in one of Japan’s finest ski resorts on Hokkaido Island, with the potential to be developed into a world-class four-season resort through luxury residential and mountain retail developments.

The group expects the proposed acquisition to improve its earnings in the longer term. However, it does not foresee the proposed acquisition to have an immediate material effect on its earnings, net assets and gearing for the current financial year ending June 30, 2010.

Niseko Village is a limited liability company with a total number of one million authorised shares, of which 496,184 shares have been issued and held by PC One.

The former owns Niseko Village Resort, located at the foothills of Mt Niseko An’nupuri, with purportedly scenic views of Mt Yotei. The resort rests on about 617ha of land comprising 462ha of owned freehold land adjacent to the 506-room Hilton Niseko Village, 200-room Green Leaf Hotel and two 18-hole golf courses, as well as 115ha of leased ski mountain land with seven ski lifts and 15 ski trails.

Niseko Village Resort is a part of four ski resorts surrounding Mt Niseko An’nupuri known locally as Niseko United.