SHUN Tak Holdings is selling its 86.22 per cent interest in three floating Chinese restaurants and a carpark podium to Melco International Development for $435.24 million, and will make a general offer for Melco shares. Melco will pay $120 million in cash for the assets and will fund the remainder by the allotment of 1.37 billion shares at 22.9 cents each to Shun Tak. Following the transaction, Shun Tak is bound to make a conditional cash offer for all remaining shares and outstanding warrants of Melco. And Melco will undergo a reorganisation with plans to consolidate every 20 existing shares into one new share. In a separate deal, Melco agreed to sell its 20 per cent stake and related loan interests in the Ramada Hotel San Francisco for $57.35 million to independent third parties.