Oxley Holdings said on Thursday its wholly owned subsidiary Oxley Gem accepted a letter of intent, or LOI, for the potential sale of the Mercure and Novotel Hotels in Singapore for S$950 million.
The LOI is non-binding and subject to the entry of a definitive agreement, it said in a filing to SGX after the market close on Thursday.
Under the terms of the LOI, once Oxley Gem receives S$9.5 million, or 1 percent of the purchase price, the purchaser will be entitled to carry out due diligence, the filing said.
The purchaser will also pay S$38.0 million, or 4 percent of the purchase price, on 28 February, and another S$47.5 million, or 5 percent of the purchase price, on the signing date of the definitive agreement, or on 15 April, whichever is earlier, the filing said.
The hotels are located at 28 and 30 Stevens Road, it said.
Oxley Holdings requested that the trading halt on its shares be lifted.