United Industrial Corp raises stake in Marina Centre to 77.34% with $675.3 million deal

By
Michelle Zhu
,
The Edge Singapore
/ EdgeProp Singapore
|
April 14, 2019 10:53 PM SGT
United Industrial Corporation (UIC), a subsidiary of UOL Group, is acquiring a further 24.27% stake in its 53.07%-owned indirect subsidiary Marina Centre Private Holdings (MCH) for $485.3 million to be paid in cash.
The acuisition is made via the purchase of shares from the following vendors: 10% from OUE Ltd for $200 million; 10.27% from Finnegan Investments Ltd for $205.3 million; and 4% from Mackmoor Pte Ltd for $80 million.
Additionally, UIC will also acquire a 25% holding in Aquamarina Hotel Private Limited (AHPL), an associated company of MCH and UIC Group, from OUE’s subsidiary Hotel Investment (Marina) for a sum of $190 million.
Marina Centre comprises Marina Square Shopping Mall and the Marina Square hotels, namely: Pan Pacific Singapore, Marina Mandarin Singapore, and the Mandarin Oriental, Singapore (Credit: Samuel Isaac Chua/EdgeProp Singapore)
MCH is a property group with investments in the Marina Square retail and commercial complex, comprising Marina Square Shopping Mall and the Marina Square hotels, namely: Pan Pacific Singapore, Marina Mandarin Singapore, and the Mandarin Oriental, Singapore.
On the other hand, AHPL is 50% owned by MCH and owns the Marina Mandarin Singapore. As at end-Dec 2018, sale shares of AHPL were estimated to have a net asset value (NAV) of $1.52 per share.
Upon completion of the acquisitions, UIC will hold a total 77.34% stake in MCH, with the remaining 22.66% to be held by its holding company UOL Group.
MCH will hold a 75% stake in AHPL, which will become a subsidiary of MCH and an indirect subsidiary of UIC. The remaining 25% of AHPL’s interest are held, and will continue to be held, by UOL’s wholly-owned subsidiary UOL Equity Investments.
With the acquisitions, OUE’s subsidiary Singapore Marina International Hotels has also agreed to cease operating the Marina Mandarin Singapore by end-2019.
"This will also give us an opportunity to rebrand and rename the 575-room hotel,” says Liam Wee Sin, UOL group chief executive in a statement on April 14. UOL’s aggregate interest (direct and deemed) in the issued and paid-up share capital of AHPL, which is an existing indirect subsidiary of UOL, will increase from 75% to 100%. .
The shares of MCH and AHPL will be acquired free from all encumbrances and together with all rights, dividends and entitlements attaching and/or accruing to them from...