M&C sells Seoul Hilton for $628m
CITY Developments (CDL) hotel arm Millennium & Copthorne Hotels (M&C) has sold the Millennium Seoul Hilton hotel for $627.9 million.
CDL said in a statement yesterday that M&C had sold CDL Hotels (Korea), which is the owner of the Seoul Hilton, to Kangho AMC.
Although the hotel was valued at about $777.2 million, the sale price of $627.9 million was agreed on after taking into account the net liabilities of CDL Hotels (Korea) as at the end of last year, including a shareholder’s loan owed by the company.
M&C Hotels had bought the hotel in 1999 for US$228.5 million (S$312.5 million).
The deal is expected to be completed in September although it is subject to the satisfaction or waiver of certain conditions, including the approval of M&C shareholders at an extraordinary general meeting.
M&C Hotels chairman Kwek Leng Beng said: ‘The sale value attributed to the hotel demonstrates once again the underlying management skill of our group in maximising shareholder value.
‘The M&C group’s strategy of being an owner of hotel assets remains unchanged.
‘However, the opportunity for sale, while unsolicited, further strengthens the M&C group’s ability to take advantage of market and cyclical opportunities.’
Source : Straits Times - 25 Jun 2008
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