Lasseters to sell 4 Aussie hotels for A$98 mln
Lasseters International Holdings Limited on Thursday said its wholly-owned subsidiaries are planning to sell four hotels to IndependentPub Group Pty Ltd for A$98 million.
The conditional sale and purchase agreement was entered with Lasseters Seaford Hotel, Lasseters Oriental Hotel, Lasseters St Francis Hotel and Lasseters Brahma Lodge.
The four freehold hotels consist of the Seaford Hotel, the Oriental Hotel, the St Francis Winery and the Brahma Lodge.
The company also entered into further conditional sale and purchase agreements to sell to the buyer 100 per cent of the issued and paid up capital of each of Lasseters Hotels (SA), Lasseters Hotels (NSW) and Lasseters Hotels (Qld).
These investment holding companies, through various subsidiaries, collectively hold leasehold interests in each of the Brahma Lodge, the Bremen Hotel, the Bombay Bicycle Club, Seaford Hotel, Oriental Hotel, Tower Hotel, St Francis Winery, Jewells Tavern, Mattara Hotel, Iron Horse Inn Hotel, Meadowbrook Hotel and Norman Hotel.
The proposed sale will result in the increase in group's earnings per share from 0.9 AUD cents to 6.91 AUD cents.
The group's net tangible assets per share will also increase from 12.01 AUD cents to 39.51 AUD cents.
The directors feel the sale may maximise shareholder value by allowing the company to focus on gaming as the core contributor.
It is also seen as 'a good opportunity to the group to unlock the assets value and to maximize its returns on assets'.
It plans to use the proceeds to reduce its bank loans and for working capital, expansions, mergers and acquisitions. -- BT newsroom