In a move to further consolidate its assets, Singapore property developer UOL Group plans to take its Pan Pacific Hotel Group private, according to a report by Bloomberg.
Controlled by billionaire Wee Cho Yaw, UOL plans to acquire the 18.4% of outstanding stock at S$2.55 (US$2.06) apiece, about a 9% premium, according to a statement to the Singapore stock exchange. Currently, Pan Pacific manages more than 30 hotels, predominantly in Asia Pacific.
The proposed buyout comes after shares of Pan Pacific have risen almost 30% over the last year with the stock now trading around 19.7 times earnings and with a market value of S$1.4 billion (US$1.13 billion). Both UOL and Pan Pacific were suspended from trading on Monday morning.
Bloomberg reported that UOL said it has no plans to change Pan Pacific’s business.