PETALING JAYA: Berjaya Corp Bhd is seeking shareholder ratification for the disposal of its stake in Four Seasons Hotel & Hotel Residence in Kyoto, Japan for a total cash consideration of ¥50.79 billion (RM2.06 billion) to Godo Kaisha Tigre (GKT).
The gain on the disposal is estimated at RM649.41 million, and was completed on March 10. Subsequently, Berjaya Kyoto Development Kabushiki Kaisha (BKD) entered into a lease agreement with Mitsubishi UFJ Trust and Banking Corporation and GKT.
As part of the proceeds from the disposal will be used towards part repayment of the group’s bank borrowings, this is expected to give rise to interest savings and in turn, will improve BCorp’s financial position.
“The disposal will also unlock capital resources that are tied up in long-term assets, thus improving the cash position of the group and providing BCorp with financial flexibility for its operations and future investments as and when they arise. The leaseback will ensure that there will be no interruption to the existing operations of the hotel which is managed by BKD,” it said in a Bursa filing.
The group also noted that the prospects for the Japanese tourism sector for the rest of the year will remain a challenge, as it would be difficult to achieve the target set for tourism visitation for the year which in turn will weigh on the performance of the hotel industry.
That said, it pointed out that Japan’s hotel industry is resilient on the back of a strong track record of weathering past crises.
“As such, it is expected that the hotel room occupancy over the longer run will grow as tourist arrivals continue to increase after the Covid-19 pandemic although very much of this will depend on the global economic outlook, barring new waves of infection,” it said.
source https://www.thesundaily.my/business/bcorp-seeks-shareholder-ratification-for-hotel-sale-XE2512189
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