Asia Standard International to inject three hotels into Yaohan HongKong

Asia Standard International Group (ASI) plans to inject three hotels into Yaohan Hongkong after a proposed takeover of the failed retailer is completed.

Deputy chairman Lim Yin-cheng said the company would inject the Empire Hotel in Wan Chai, the Empire Landmark Hotel in Canada and a Tsim Sha Tsui hotel under construction.

The injection plan was unveiled one day after the company announced its plan to take over Yaohan Hongkong, which is in liquidation, as a way of a backdoor listing of its hotel businesses.

Under the agreement, hotel unit ASH will pay Yaohan funds to be made available for distribution to Yaohan's adjudicated creditors.

ASH will also allot and issue certain ASH shares to shareholders of Yaohan in exchange for all the existing shares of Yaohan.

ASH, which will acquire from ASI interests in those subsidiaries that are principally engaged in hotel and related business, is expected to be listed on the stock exchange by way of introduction.