KUALA LUMPUR: Country Heights Holdings Bhd
(CHHB) has entered into a joint venture agreement with Galaxus Corp Sdn Bhd and Tan Sri Lee Kim Tiong @ Lee Kim Yew to revamp the management and business of the Palace of Golden Horses in Seri Kembangan.
The joint venture will be done through a newly incorporated company Stallion Management Sdn Bhd, CHHB said in a filing with Bursa Malaysia yesterday.
CHHB is primarily involved in the hospitality and property development industries.
Lee is a director and major shareholder of CHHB.
CHHB said the move was in line with the company’s plan to expand its hotel business.
“The joint venture is expected to seek strategic partners to expand the hotel business, raise funds for the expansion of the hotel business, and target on a best effort basis the securing of at least five additional hotels within Asia to be managed as part of the business,” it said in the announcement.
The group said it would be funding its investment in Stallion Management through internally generated funds.
Stallion Management was incorporated on Oct 23, 2015 as a private limited company with its principal activity in hotel management.
Following the joint venture agreement, the group will own 69% of Stallion Management, while Galaxus will own 30% and Lee will own 1%.
The agreement will come into effect on Dec 9, 2015.
The group added that the joint venture would not have any material effect on the earnings, gearing and net tangible assets of the group for the financial year ending Dec 31, 2015.
“However, the joint venture is expected to contribute positively to the future earnings of the CHHB Group,” it said.
The joint venture which shall come into effect on Dec 9 will see a board that shall comprise a maximum of two directors, of which one member will represent the collective interests of CHHB and Lee, and one member will represent Galaxus.
Already a subscriber? Log in
Get 20% OFF The Star Digital Access
Cancel anytime. Ad-free. Unlimited access with perks.
