Singaporean businessman excels at turning big names into big money

Ong Beng Seng, the power behind Singapore-listed Hotel Properties (HP) - the company reprimanded by the Singapore Stock Exchange for tardiness in disclosing discounts given to directors on flats - is not like other Singapore businessmen.

They work diligently and effectively at nation-building, boost the gross national product, then relax with a round of golf on Bataam Island or at the Club.

Mr Ong works hard too, but he relaxes by hanging around with hunks, hard men and cover girls like Arnie, Bruce, Sly and Demi. It's been a highly profitable relationship. Last week Mr Ong was one of the big winners when shares in Planet Hollywood (PH) soared after their launch on the Nasdaq market. Most of Singapore knew that Mr Ong was involved with Arnold Schwarzenegger, Bruce Willis and Sylvester Stallone in their fashionable restaurant gig, but the extent of the involvement came as a surprise - a pleasant one for shareholders in Hotel Properties which holds about 20 per cent of PH. The score and a half of Hollywood celebrities who backed the scheme each took less than 2 per cent so it is Mr Ong who should be buying the champagne at the Los Angeles parties this week.

He can certainly afford to. The stock leaped to a 66 per cent premium when trading began last week, valuing each share on the Nasdaq at US$27.75 and putting a tag of more than US$190 million on HP's holding.

The original investment was only about US$30 million, so Mr Ong's reputation in the republic as a shrewd deal-maker is in no danger, even if the immediate profit is purely on paper. HP's interest in the restaurant chain is held through a 50 per cent stake in Planet Hollywood Holdings, which cannot sell any shares until January 1, 1997. Until then, all investors will be hoping that the verdict of analysts unfazed by the glamour of the issue, and who believe it to be massively overvalued, will be proved wrong.

Mr Ong's connection with the Hollywood stars is yet another example of his involvement with big names and big money.