KUALA LUMPUR: Shares of Boustead Holdings Bhd on Bursa Malaysia rose this morning, after the company disposed of its Royale Chulan Bukit Bintang Hotel for RM197mil in cash.
The counter rose marginally by 1.47%, or two sen to RM1.38 in thin volume.
Boustead has inked a sale and purchase agreement (SPA) today with Singapore's Hotel Royal Ltd to sell its Royale Chulan Bukit Bintang Hotel for RM197mil.
"The group is expected to realise a total estimated gain of RM92mil upon completion of the proposed disposal, translating into approximately 4.5 sen per share.
“This is indeed an attractive opportunity to enhance value for shareholders which resonates well with our business strategy," it said.
Boustead said the SPA was inked between its subsidiary, Boustead Hotels & Resorts Sdn Bhd and Hotel Royal's subsidiary, Every Room A Home Sdn Bhd.
But the SPA is conditional upon Hotel Royal obtaining the approval from the Economic Planning Unit of the Prime Minister’s Department of Malaysia, to acquire the property, it said.
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