KUALA LUMPUR: Oriental Holdings Bhd
(OHB) announced that it will be acquiring 100 per cent interest in Northam Georgetown Sdn Bhd (NGSB) and three properties for RM411 million.
In a Bursa Malaysia filing, OHB said the three properties are the Bayview Hotel Georgetown and Wisma Boon Siew in Penang and the Bayview Hotel Langkawi in Kedah.
The company stated that the acquisitions are part of its strategy to expand and diversify its hospitality portfolio, positioning itself as a premier hospitality player.
"OHB group’s proposed acquisition of the hotels aligns with its strategy to expand and diversify its hospitality portfolio by investing in hospitality assets with good potential, while strengthening the group’s recurring income stream from the hotels and resorts segment.
"The proposed acquisition of the hotels also supports OHB group’s operational restructuring to transition towards a third-party management model for its hotels and resorts,” it said.
OHB said it had entered into a conditional share subscription agreement with Boon Siew Sdn Bhd (BSSB) and NGSB for 153.1 million ordinary shares in NGSB for RM153.1 million.
"Upon completion of the share subscription agreement, OHB shall be the legal and beneficial owner of 96.84 per cent equity interest in NGSB.
"Following this, OHB and BSSB shall enter into a share sale agreement, the agreed form of which is appended to the share subscription agreement, for the proposed acquisition of the remaining 3.16 per cent equity interest in NGSB, comprising five million ordinary shares in NGSB for a purchase consideration of RM13.90 million in cash,” it added.
NGSB owns the Bayview Beach Resort Penang, located in Batu Feringghi, a four-star, 365-room resort hotel.
Regarding the property purchases, OHB said that its wholly owned subsidiary, Farquhar Properties Sdn Bhd, has entered into a conditional sale and purchase agreement with BSSB to acquire the four-star-rated Bayview Hotel Georgetown and Wisma Boon Siew in Georgetown for RM153 million in cash.
The company added that its wholly owned subsidiary, Northam Langkawi Sdn Bhd, had entered into a conditional sale and purchase agreement with Boon Siew Development Sdn Bhd to acquire the four-star Bayview Hotel Langkawi in Langkawi, Kedah, for RM91 million.
The OHB group is engaged in multiple core business segments, including automotive and related products, plastic products, hotels and resorts, plantations, investment holding, investment properties, and the trading of building material products and healthcare.
For the financial year ended Dec 31, 2024, the hotels and resorts segment contributed approximately six per cent to OHB’s total revenue.
OHB group has seven operating hospitality units under its portfolio, namely, Bayview Hotel Malacca (Malaysia); 30 Bencoolen (Singapore); Bayview Geographe Resort (Australia); The Sydney Boulevard Hotel (Australia); Wairakei Resort Taupo (New Zealand); Somerset Park Suanplu (Thailand); and Thistle Holborn The Kingsley Hotel (United Kingdom).
"Barring any unforeseen circumstances, the submission to the relevant authorities for the proposals is expected to be made within two months from the date of this announcement.
"Barring any unforeseen circumstances and subject to all approvals being obtained, the proposals are expected to be completed in the third quarter of 2026,” it said. - Bernama
