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Tuesday, December 11, 2007

Berjaya Land to buy Faber Labuan for RM226.5m

Faber Group Bhd's subsidiary Faber Hotels Holdings Sdn Bhd said it is selling off Faber Labuan Sdn Bhd (FL) to Berjaya Land Bhd for RM226.5 million cash.

FL is an investment holding company with a 70 per cent equity interest in Vimas Joint Venture Co Ltd that in turn is involved in the building and operation of the five-star, 299-room Sheraton Hanoi Hotel & Tower in Hanoi, Vietnam.

The hotel is the only remaining hotel owned by Faber post-implementation of its debt restructuring exercise in 2004. The sale was arrived at on a willing-buyer willing seller basis via a bidding process.

In a statement issued yesterday, Faber said it expects to realise a gain on disposal of RM99.06 million. It will use proceeds from the disposal to redeem its redeemable convertible preference shares and to finance business growth and expansion plans.

"The proposed disposal of the Sheraton Hanoi Hotel will allow Faber to unlock the value of its investment in its hotel division," Faber managing director Adnan Mohammad said.

He said the group will now focus on its core businesses of facilities management in healthcare and non-healthcare, and property development.

By New Straits Times

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