The Lai Sun group of companies plans to reorganise its hotel assets in a deal valued at more than $2.58 billion.
The move aims to streamline the holding structure of the group's hotel business and to allow for future expansion. The proposal will see Lim Por-yen's property development arm, Lai Sun Development, putting all its hotel interests under its 54 per cent owned Lai Sun Hotels International.
The companies said last night Lai Sun Hotels would acquire from Lai Sun Development its interests in three hotels - The Ritz-Carlton in Hong Kong; the Four Seasons Hotel in New York; and the Regent Beverly Wilshire Hotel in Los Angeles - and serviced apartment units in the Hong Kong Plaza, a Shanghai project being developed by a subsidiary of Lai Sun Development.
Lai Sun said the total consideration for the hotel assets was determined 'at arm's length' and represented a 12.6 per cent discount to the current valuation of the hotels.
Lai Sun Hotels will pay $401.19 million in cash and issue to Lai Sun Development 840.4 million new shares at $2.025 a share to satisfy the hotel purchases. It also will issue 215 million warrants conferring the right to subscribe for up to $473 million for new Lai Sun Hotels shares, to pay for the Hong Kong Plaza.