Oriental Holdings' Northam Georgetown stake subscription turns unconditional

Oriental Holdings Bhd's share subscription agreement for a 96.84% stake in Northam Georgetown Sdn Bhd became unconditional on Oct 14, after remaining conditions were fulfilled or waived. The deal is part of a broader RM411 million related-party acquisition package involving three Penang properties.

PETALING JAYA (Oct 15): Oriental Holdings Bhd's share subscription agreement for a 96.84% stake in Northam Georgetown Sdn Bhd became unconditional on Oct 14, after the remaining conditions precedent were fulfilled or waived.

The subscription forms the first stage of the group's proposed RM167 million acquisition of Northam Georgetown. Following completion of the subscription agreement, Oriental Holdings is to enter into a separate share sale agreement with Boon Siew Sdn Bhd to acquire the remaining 3.16% stake.

In a filing with Bursa Malaysia on Wednesday (Oct 14), CIMB Investment Bank Bhd said on behalf of Oriental Holdings that the conditions relating to the novation of the Ascott agreements and the mutual termination of the tenancy and services agreements had been fulfilled. Oriental Holdings waived the final contractual condition precedent relating to the grant to Northam Georgetown of an irrevocable right to use the “Bayview” brand name, as well as the relevant licences, certificates and approvals required to operate Bayview Beach Resort Penang.

The latest filing did not announce completion of the subscription or the overall Northam Georgetown acquisition.

The Northam Georgetown transaction forms part of a RM411 million package of related-party acquisitions, which also includes Bayview Hotel Georgetown and Wisma Boon Siew for RM153 million, and Bayview Hotel Langkawi for RM91 million.

Oriental Holdings, Boon Siew and Northam Georgetown had on Aug 7 agreed to extend the conditional period under the subscription agreement to Oct 15 to allow the relevant conditions precedent to be fulfilled.

Separately, Oriental Holdings announced on Aug 27 that the acquisition of Bayview Hotel Georgetown and Wisma Boon Siew had been completed following full payment of the purchase consideration. The properties were acquired through wholly-owned subsidiary Farquhar Properties Sdn Bhd.