Oxley Holdings said late on Tuesday it was terminating the letter of intent, or LOI, to sell Mercure and Novotel Hotels to Gracious Land for S$950 million as the potential buyer didn’t make a deposit payment.
“The LOI is terminated with immediate effect on the account of a material and/or repudiatory breach,” Oxley said. “Oxley Gem reserves its rights to take all steps necessary to protect its interest.”
In January, Oxley’s wholly owned subsidiary Oxley Gem accepted an LOI for the potential sale in a deal that set out timelines for deposits. However, on Tuesday Oxley said Gracious Land did not make a S$38.0 million deposit, which was 4 percent of the purchase price and due at the end of February.
Gracious Land has sought a refund of its initial S$9.5 million deposit, Oxley said that under the January agreement, the deposit is non-refundable.