MD unaware of Shangri-La privatisation

Business & Markets 2013
Written by Shalini Kumar of theedgemalaysia.com
Tuesday, 21 May 2013 10:10
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KUALA LUMPUR: Shangri-La Hotels (Malaysia) Bhd (SHMB) is not
aware of any plan for its privatisation, said managing director Kay Kuok
Oon Kwong after the group’s AGM yesterday.
Rumours of a takeover by controlling shareholder Robert Kuok Hock
Nien emerged recently after he bought more shares in the hotel group,
“It’s not up to the company whether to privatise or not, it’s up to the
majority shareholders to make a decision in that aspect, and we are not
aware of any plans,” she told reporters.
It was first reported in March that the hotel group could be taken private
after the Kuok family’s investment vehicle, Kuok Brothers Sdn Bhd
bought a 22.2% block of Shangri-La shares from Standard Chartered
Private Equity Pte Ltd — thereby raising its equity interest to 74.98%
from 52.78% previously.
Robert Kuok’s indirect interest of 52.78% in SHMB is held via Kerry
Group Ltd.
Standard Chartered Private Equity Pte Ltd is a unit of Standard
Chartered plc, partly owned by Temasek Holdings Pte Ltd.
Kuok Brothers paid RM328.4 million for the 22.2% block under a sale
and purchase agreement dated March 20. The transacted price of
RM3.35 per share was a steep discount of 18.4% to Shangri-La’s
trading price of RM4.11 then.
For its financial year ended Dec 31, 2012, SHMB recorded a net profit of RM67.3 million, up 20.7% from last year’s RM55.8
million.
Revenue increased 9% to RM469.6 million. The group also proposed a final dividend of 7%, bringing the full year’s payout to
10%.
Its third largest shareholder after Kerry and Kuok Brothers, Aberdeen Asset Management plc has been buying shares in the
hotel group, raising its stake in SHMB to 12% or 52.8 million shares, from 11.6% previously.
Kay said shareholders had queried the reason behind the hotel group’s jump in share price, adding that she did not know.
Shangri-La’s shares closed at RM6.10, 1.7% higher than last Friday’s close of RM6 with 150,000 shares done.
Looking forward, Kay hoped the group would match its 2012 financial performance, encouraged by growing momentum in
both the business and leisure travel markets.