SHUN Tak Holdings intends to inject restaurant interests in Macau and Singapore into Melco International. Among the assets involved are a 25 per cent stake in Future Bright Restaurant Enterprises, whose interests now include a food court at Shun Tak House in Macau, and a 50 per cent stake in a floating restaurant in Singapore. Shun Tak finance director Andrew Tse said the move might not take place for some time as some of the operations were not particularly profitable and needed reshaping. Shun Tak has already announced the transfer of its three floating restaurants in Hongkong to sister company Melco. The $435 million price was 10 times the restaurant operations' net profit last year. Given that the average price-earnings multiple of listed restaurant stocks is between six and eight, analysts regard the price as high. Mr Tse said the premium was based on the floating restaurants' good trading record and monopoly position. Their turnover last year was $229 million. Pre-tax profits were $61.4 million. Mr Tse said that while the intention was to turn Melco into Shun Tak's food, catering and restaurant arm, Melco would still invest in Hongkong property. He said Shun Tak would concentrate on Hongkong, Macau and China properties. After the restaurant deal, Shun Tak, Mr Stanley Ho and related parties will be beneficially interested in at least 71.21 per cent of Melco's enlarged capital. Shun Tak will directly hold a 59.79 per cent interest in Melco.