5 days ago
- Business
- Malaysian Reserve
MUI Properties subscribes to RM5.75m preference shares in MUIB hotel unit
MUI Properties Bhd (MUIP) is subscribing to £1 million (RM5.75 million) worth of preference shares in London Vista Hotel Ltd (LVHL), an indirect wholly-owned subsidiary of its parent company, Malayan United Industries Bhd (MUIB).
In a bourse filing, MUIP said it has entered into a preference share subscription and holders' agreement (PSSHA) to subscribe for one million cumulative redeemable non-convertible preference shares (CRNCPS) in LVHL at £1 each.
The subscription represents 18.7% of LVHL's CRNCPS.
The shares carry a fixed preferential dividend of 6% per annum, payable at the end of a two-year term, and rank senior to ordinary shares in dividend payments and capital returns.
Redemption is mandatory upon maturity and can be triggered earlier upon the disposal of properties held by LVHL or its subsidiaries — including a full redemption if the Corus Hotel Hyde Park is sold.
LVHL owns and operates the freehold Corus Hotel Hyde Park in central London via its unit Plaza on Hyde Park Ltd, and holds a 61% stake in County Hotels Ltd, which owns the Burnham Beeches Hotel in Buckinghamshire.
Proceeds from the CRNCPS issuance will be used to meet LVHL's working capital requirements.
The transaction is deemed a related party transaction as MUIP is a 72.27%-owned subsidiary of MUIB.
Andrew Khoo, who serves as executive chairman and CEO of both MUIP and MUIB and is the son of major shareholder Tan Sri Khoo Kay Peng, abstained from board deliberations.
Director Wong Nyen Faat, who also sits on both boards, voluntarily abstained as well.
MUIB, in a separate filing, said the issuance of CRNCPS to MUIP is not considered a related party transaction under Bursa Malaysia's listing rules, as MUIP is a subsidiary.
Nonetheless, the company observed similar governance protocols.
LVHL is currently undertaking a multi-million-pound repositioning exercise for its assets, including rebranding Corus Hotel Hyde Park under an international luxury brand.
It expects this to significantly improve average room rates and profitability.
Burnham Beeches Hotel has also undergone a brand transformation under 'Imerso Hotels', targeting growth in weddings and spa segments. — TMR
