Who said Icelandair hotels are all purchased in cash, it could be a mix of shares in exchange & put options in BJLand shares for Icelandair who is selling their profitable hotel biz to focus on their core Biz on aviation, it will solve BJLand's current free float problems in the short term with introduction of a new investor in BJGroup?
possible, the Icelandair becomes a major shareholder through share swap. better for bjland as corporate governance will be emphasized with European company as shareholder
The hotel operator will also open a new 145-room hotel at Austurvöllur Square in Reykjavik’s Parliament district in collaboration with Hilton Hotels in 2020.
Good branding if listing the hotel division with Four Season & Hilton as the jewel in the crown
Wait buy lower again. Must con than the boss otherwise we all lost Remember attack con man must 1000000p times more con than him Teaching him a lesson for how to become a human being since he lost the original when he start doing a business by using hard working not share market
Berjaya Group executive chairman Tan Sri Vincent Tan (picture) said the acquisition of Icelandair Hotels will complement the group’s existing portfolio of 19 city and resort hotels located in Malaysia, Vietnam, the Philippines, Japan, Sri Lanka, Seychelles and the UK.
what is the good timing to privatise? of cos after 6 months from Penta's deal la, then he no need to obey Bursa rule and offer much lower price than Penta's deal
The Board of Directors of Berjaya Land Berhad (“B-Land”) wishes to announce that its wholly-owned Irish incorporated subsidiary, Berjaya Property Ireland Limited (“BPIL” or “Purchaser”) has on 13 July 2019 in Reykjavik, Iceland entered into a Share Purchase Agreement (“SPA”) with Icelandair Group hf. (“Icelandair Group” or the “Seller”) for the proposed acquisition of 75% stake in Icelandair Hotels ehf (“Icelandair Hotels”), which will acquire 100% of Hljomalindarreitur ehf (“Hljomalindarreitur”) and certain hotels and real estate assets in Iceland pursuant to the Proposed Pre-Closing Restructuring (as defined below), (collectively referred to as the “New Icelandair Hotels Group”),for a total cash consideration of approximately USD53.63 million (about RM222.03 million*) (“Purchase Consideration”) (“Proposed Acquisition”).
yeah, the hotel deal is not too bad, at least its return is much better than the Vietnam Hotel disposed. Hopefully, there will be a 0.01 per share dividend this year...
KUALA LUMPUR (July 15): Berjaya Land Bhd (BLand), which is controlled by tycoon Tan Sri Vincent Tan, is buying a 75% stake in Icelandair Hotels ehf in a US$53.63 million (RM222.03 million) deal that would allow the group to enter the luxury hotel segment in Iceland.
BLand said the proposed acquisition is in line with the group’s geographical diversification and revenue expansion.
"The luxury hotel segment in Iceland is expected to grow and the proposed acquisition will enable the group to enter this segment with strategically located hotels in the heart of Iceland, as well as certain hotels being operated under the Hilton brand name," it added.
In a filing with Bursa Malaysia today, BLand said its wholly-owned Irish incorporated subsidiary, Berjaya Property Ireland Ltd (BPIL), had on July 13 entered into a share purchase agreement (SPA) with Icelandair Group hf for the proposed acquisition.
BPIL also entered into a shareholders agreement and a put and call option agreement with Icelandair Group for the remaining 25% stake in the New Icelandair Hotels Group, after three years post-completion of the proposed acquisition.
Icelandair Hotels currently operates 20 hotels with a total room count of 1,811 rooms located all around Iceland. In addition, a new 5-star 145-room hotel in Reykjavik's Parliament district developed in collaboration with Hilton Hotels, is scheduled to be launched in 2020.
In a separate statement, BLand said the proposed acquisition will increase the group's room inventory to 6,011 rooms, from about 4,200 now.
Deeming the investment as "a low entry cost", Tan, who is founder and executive chairman of Berjaya Corp Bhd, said the average price for the stake in Icelandair Hotels works out to about US$75,096 per room.
“The Icelandair Hotels is one of the largest hotel chains in Iceland, and its hotels are operated at a very high standard by a passionate and dedicated team. We are delighted to add this hotel group to our growing network of hotels and resorts.
“We look forward to working with the Icelandair Group. I believe this investment represents good long term value for Berjaya,” he added.
The enterprise value of the New Icelandair Hotels Group is fixed at US$136 million, which represents a multiple of about 11.33 times based on its earning before interests, taxation, depreciation and amortisation (ebitda) of US$12 million for the financial year ended Dec 31, 2018 (FY18).
The US$53.63 million price tag was derived after adjustments which were derived from the proforma balance sheet of the New Icelandair Hotels Group.
BLand said it will fund the proposed acquisition via borrowings and/or internal funds.
BLand shares closed up 0.5 sen or 2.86% at 18 sen today, bringing a market capitalisation of RM900.06 million.
the actual price of the hotel can be just 30 million usd the rest 23 million usd can be going into their family pocket. why in the rush buying another hotel after sold off Vietnam property? maybe someone with the knowledge can answer which I doubt.
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Good123
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Posted by Good123 > 2019-07-15 10:29 | Report Abuse
last batch for sale below 20sen :)