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Tuesday, May 6, 2008

Tradewinds buys Khazanah's share in hotel unit

TRADEWINDS Corporation Bhd (TCB) has entered into a sale and purchase agreement to buy 25.67 per cent of Tradewinds Hotels and Resorts Sdn Bhd (THRSB) shares and 371.64 million of its irredeemable convertible unsecured loan stocks (ICULS) from Khazanah Nasional Bhd for RM400 million cash.

TCB said the proposed acquisitions represent its continuous effort to focus on and streamline its hotel and property development business.

"The proposed acquisitions will enable TCB to have full control over the future direction of the hotel business," it said in a statement to Bursa yesterday.

The purchase consideration was arrived at based on a willing-buyer willing-seller basis, after taking into consideration the net asset of THRSB of about RM1.12 billion based on an audited account of THRSB as at December 31 2007.

The proposed acquisitions will be funded by way of internally generated funds and bank borrowings, TCB said.

TCB and its respective subsidiaries are directly holding the hotels and resorts assets such as the Hotel Istana in Kuala Lumpur, Crowne Plaza Mutiara in Kuala Lumpur, Hilton Petaling Jaya, Hilton Kuching, Hilton Batang Ai in Sarawak, Mutiara Taman Negara, Mutiara Johore Baru, Meritus Pelangi Beach Resort & Spa in Langkawi as well as the landed assets of the former Mutiara Beach Resort in Penang and the Mutiara Pedu Lake in Kedah which have ceased operations.

The net assets and loss after taxation of THRSB based on the latest audited financial statements for the financial year ended December 2007 are RM1.12 million and RM9.47 million respectively.

Based on the audited accounts of TCB as at end December 2007, the proposed acquisitions would result in TCB realising a one-time net gain of RM135.8 million arising from the negative goodwill or an increase in earnings per TCB shares by 12.27 sen.

By New Straits Times

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