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.