PETALING JAYA: MUI Properties Bhd
(MUIP) is investing £1mil (RM5.75mil) in one million cumulative redeemable non-convertible preference shares (CRNCPS) of London Vista Hotel Ltd (LVHL), a United Kingdom-based subsidiary of Malayan United Industries Bhd (MUIB).
In a filing with Bursa Malaysia, MUIP revealed that the preference shares offer a 6% annual dividend over a two-year term, with full capital and unpaid dividends to be returned at maturity or earlier, especially if LVHL liquidates key hotel assets.
LVHL owns London’s Corus Hotel Hyde Park, currently undergoing a luxury repositioning, and a majority stake in Burnham Beeches Hotel.
MUIP said the investment is expected to provide the group with a stable, predictable income stream.
The subscription is funded internally, requires no regulatory approvals, and has limited financial impact on MUIP, said the group, with completion being targeted for the third quarter.
As MUIB holds 72,27% of MUIP, the transaction is a related party deal, with interested directors abstaining from board decisions.
