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Ong Beng Seng, Wheelock make offer for HPL

CONSOLIDATION MOVE: Mr Ong's company, 68 Holdings, said the hotelier and the other long-term shareholders are making the offer for HPL shares in a bid to consolidate their stake in HPL and to enhance value over time.


    Apr 16, 2014

    Ong Beng Seng, Wheelock make offer for HPL

    HOTELIER Ong Beng Seng and Wheelock Properties are making a mandatory cash offer to buy Hotel Properties Limited (HPL) at S$3.50 a share.

    The price represents an 11.82 per cent premium on HPL's last traded price on Friday.

    The offer follows an agreement on Monday by Mr Ong's company, 68 Holdings, to buy a total of 213.98 million HPL shares, representing a 41.91 per cent stake at S$3.50 each.

    It will buy an 18.44 per cent stake from Mr Ong Beng Seng (OBS), Reef Holdings and Como Holdings, which are companies controlled by OBS. Another 0.32 per cent will be bought from Mrs Christina Ong, Mr Ong's wife.

    About 20.16 per cent will be purchased from Nassim Developments; 2.9 per cent from Mr David Ban and 0.08 per cent from Ms Tan Quee Heong, Mr Ban's wife. 68 Holdings is 60 per cent owned by Cuscaden Partners and 40 per cent owned by Nassim Developments.

    Cuscaden is an investment holding company in which Mr Ong has a 90 per cent interest and Mr Ban, a 10 per cent stake. Nassim Developments is an indirect wholly owned subsidiary of Wheelock Properties (Singapore).

    Cuscaden and Nassim Developments have formed a consortium in connection with the offer.

    On the rationale for the offer, 68 Holdings said: "OBS, as the co-founder of HPL, David Ban and Wheelock Singapore have been long-term shareholders of HPL and they share a common vision and strategy for HPL.

    "They have therefore decided to consolidate their shareholdings in HPL so as to be in a position to cooperate and implement their shared objectives for HPL and to enhance value over time."

    They intend to retain the listing of HPL on the mainboard of the SGX-ST but in the event that the free float falls below 10 per cent, there will be a reassessment of options. Standard Chartered Bank is acting on behalf of 68 Holdings.