Great Eagle begins public offering of units in Langham Hospitality trust
The sale is expected to raise HK$3.96 billion to HK$4.57 billion. Great Eagle will control and own at least 51 per cent of the managers of the trust after the spin-off.
Langham Hospitality Investments begins its public offering of units in a hotel investment trust today, aiming to sell them in the price range of HK$4.65 to HK$5.36.
The sale is expected to raise HK$3.96 billion to HK$4.57 billion. Great Eagle will control and own at least 51 per cent of the managers of the trust after the spin-off.
The forecast distribution per unit from the listing date to the end of this year is expected to be about HK$0.18.
With a possible distribution waiver from Great Eagle, the yield could range between 5.73 and 6.60 per cent, depending on the offer price.
Each lot contains 500 shares, meaning the entry level would range between HK$2,325 and HK$2,680. The public offering ends on May 22 and the units will list on May 30. The trust comprises three hotels in Hong Kong with 1,629 guest rooms.
Lo Ka-shui, chairman of Langham Hospitality and Great Eagle, said yesterday: "I hope the spin-off will help Great Eagle to expand further. Great Eagle will be more aggressive in purchasing hotels and hotel development sites. When they become good yield-assets, we will add them to the trust."