Fragrance-Aspial joint venture to sell LC London for around S$145.81 million

Singapore two-dollar bills

AF Global, a joint venture between Fragrance Group and Aspial Corp., said on Monday that it had agreed to sell all of LC London for around 84.36 million British pounds, or around S$145.81 million.

LC London, incorporated in England and Wales, is a hotel investment company with a primary asset of the Crowne Plaza London Kensington hotel in London, U.K., it said in a filing to SGX before the market open on Monday.

The buyer, which is unrelated to the company or its substantial shareholders, was selected as the preferred bidder after a competitive bidding process and an in-depth review of bidding proposals, it said.

Based on AF Global’s unaudited financial statements for the nine months ended 30 September, the book value and net tangible asset value of the LC London sale shares was around S$65.22 million, the filing said.

The estimated net gain was expected to be around S$14.37 million, it said.

“The disposal is an opportunity for the company to realize the value of the sale shares at a premium to its investment costs,” AF Global said.

Part of the proceeds will be earmarked to fully repay banking facilities secured by the hotel and to settle an inter-company loan LC London owes to AF Global, the filing said.

“The remaining proceeds from the disposal would be used to further strengthen the group’s balance sheet, enhance the group’s financial flexibility and facilitate any plans by the group to enhance shareholder value,” AF Global said.

After the disposal, AF Global will remain in the hospitality business via its holdings of other hotels, including the Holiday Inn Resort Phuket and the Phuket Rawai Beach Resort, it said.

The deal is expected to close on 11 April 2019, the filing said.

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