Country Heights to revamp Palace of the Golden Horses management

THE PALACE OF THE GOLDEN HORSES HOTEL WILL BE HOSTING THE ASEAN SUMMIT EVENTS.

KUALA LUMPUR: Country Heights Holdings Bhd (CHHB) has entered a joint-venture agreement with deputy chairman Tan Sri Lee Kim Tiong @ Lee Kim Yew and Galaxus Corp Sdn Bhd to revamp the management and business of luxury hotel Palace of the Golden Horses in Seri Kembangan, Selangor.

The property developer, whose core businesses also include hospitality and education, told Bursa Malaysia that the joint venture (JV) would be done through a newly incorporated company, Stallion Management Sdn Bhd, in which CHHB would own 69%, Lee 1% and Galaxus 30%.

Lee is the founder, deputy chairman 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.

The JV company will have a board that comprises a maximum of two directors, of which one will represent the collective interests of CHHB and Lee, and one will represent Galaxus.

The group added that the JV 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 JV is expected to contribute positively to the future earnings of the CHHB Group,” it said.

CHHB shares gained 6 sen to close at RM1.06 on Wednesday.