Hotel Properties Limited (HPL) / Ong Beng Seng

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http://infopub.sgx.com/Apps?A=COW_CorpA ... 95680d6854

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Hotel Properties Ltd– Dissolution of Wheelock-OBS Partnership Could Pave Way for Privatization Offer and more


Hotel Properties (HPL SP) (“HPL”) announced on Friday evening a significant change in its shareholdings relating to the HPL shares owned by 68 Holdings Pte Ltd.

The restructuring of shareholding did not come as a surprise and was within expectations.

Now, Wheelock holds only a significant minority interest of 22.53% and without a board seat in HPL.

Wheelock’s influence in HPL has been reduced significantly.

Without control, Wheelock’s investment in HPL is as good as any other non-strategic investment in quoted securities.

In the event that Wheelock Properties decides to sell its HPL shares, Mr Ong will be a likely buyer of the HPL shares.

This will present a very good opportunity for Mr Ong to successfully privatise and delist HPL.

Source: Smartkarma

https://www.smartkarma.com/home/daily-b ... -and-more/

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FEB 24, 2017

Kuo's Peter Fu splits with HPL's Ong Beng Seng

by Grace Leong

A dispute between the wealthy Fu and Ong families who are linked by marriage and business has been settled out of court and will result in them going their separate ways on the corporate front.

The settlement means a lawsuit bought by Mr Peter Fu Chong Cheng, 66, head of oil trading and investment holding firm Kuo International, and his sister Juanita, 61, will now not go ahead.

"We didn't go to trial because we settled the matter out of court on confidential terms, and to the satisfaction of both sides," Mr Fu told The Straits Times. "Juanita and I are pleased that we have now parted ways with Ong Beng Seng."

Mr Ong is managing director of Singapore-listed property giant HPL. He is married to Club 21 fashion group founder Christina Ong, the sister of Peter and Juanita Fu.

Mr Fu and sister Juanita own shares in HPL while Mr Ong and his wife hold a stake in Kuo.

Terms of the settlement are confidential but HPL filings on the Singapore Exchange on Dec 2 last year show that a transfer of 83.4 million shares in the issued and paid-up capital of HPL was completed.

Mr Ong did not respond to requests for comment. The Ongs' lawyer, Mr Ang Cheng Hock of Allen & Gledhill, also declined to comment.

Mr Ong, 72, and wife Christina, 70, are estimated by Forbes to have a net worth of US$2 billion (S$2.8 billion). Mr Fu's estimated net worth of US$900 million comes mostly from oil trading and investment holding firm Kuo International, set up by his late father, Mr Peter Fu Yun Siak.

The families were close business partners. With $45 million of funds, the Kuo Group incorporated HPL in 1980 for the purpose of buying the Hilton Hotel. Mr Ong, who had been Kuo's managing director since 1978, left Kuo's Singapore office and began managing HPL in 1981.

While Mr Ong grew HPL's hotel management and property development business, Mr Fu played a key role expanding Kuo's oil-related businesses and transforming the company into one of the biggest players in Singapore.

After Mr Fu's father died, the relationship between Mr Fu and Mr Ong soured. Mr Fu increasingly flagged concerns over the way Mr Ong "imposed his own business interests onto HPL at the expense of shareholders", according to court papers. For his part, Mr Ong claimed that Mr Fu attempted to obstruct the management of HPL.

Source: Straits Times

https://www.straitstimes.com/business/c ... -beng-seng

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BRIEF-Hotel Properties Says FY Profit Attributable S$121.3 Million Versus S$178.2 Million

Feb 26 (Reuters) - Hotel Properties Ltd

FY PROFIT ATTRIBUTABLE S$121.3 MILLION VERSUS S$178.2MILLION

FY REVENUE S$579.5 MILLION VERSUS S$659.2 MILLION

RECOMMENDED A FIRST AND FINAL ONE-TIER TAX EXEMPT CASH DIVIDEND OF 4 CENTS PER ORDINARY SHARE

RECOMMENDED SPECIAL DIVIDEND OF 6 CENTS PER ORDINARY SHARE

Source: Reuters

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Hotel Properties Limited ($3.76, up 0.5 cents) announced weaker FY18 results as revenue declined -12.1% and -31.9% to $579.5mln and $121.3mln respectively.

While we expected HPL’s property development arm profits to decline due to a lack of upcoming projects, we were disappointed to note that the hospitality arm earnings which came in lower by 12.2% to $64.7mln despite a 3.6% increase in revenue to $506.8mln.

HPL subsequently declared total dividends of 10 cts (4 cts ordinary and 6 cts special dividend), which is the same as last year.

Overall, the revenue declines was mainly attributable to lower contribution from the property division as the remaining completed condominium units at Tomlinson Heights development were fully sold earlier this year resulting in a corresponding decrease in cash generated from operations.

This was partially off set by better performance by the Group’s hotels in Singapore and contributions from new subsidiaries, Hard Rock Hotel Penang and The Boathouse, Phuket.

The Group’s share of results of associates and jointly controlled entities decreased from $133.4mln to $92.8mln for the year under review mainly due to lower profi ts from the Burlington Gate development in London.

Nevertheless, the Group received dividends and repayments from associates and jointly controlled entities during the year under review generating net cash inflow of $280.6mln compared to $68.2mln for previous year.

Group profit, before income tax and fair value changes in investment properties for the year ended December 31, 2018, was $150.5mln compared to $209.8mln last year.

After accounting for fair value changes, income tax and non-controlling interests, Group net profi t attributable to shareholders for the year ended December 31, 2018, was $121.3mln compared to $178.2mln last year.

The Group’s hotels and resorts portfolio, which expanded over the recent years with acquisitions in London, Penang, Phuket, Langkawi and the latest in Tuscany, continues to provide a stable recurring income base.

However, trading conditons remain challenging with rising competition and labour costs in various jurisdictions.

The global economic environment also remains uncertain with Brexit and the ongoing trade tension between US and China. In London, the Group will continue to market the remaining apartment units in the Burlington Gate and Holland Park Villas. Development of the other two sites located at Paddington and Southbank are also ongoing.

Trading at PB of 0.98x, we think that valuations currently are fair at best. Accordingly, investors are paid a 2.7% yield for a hospitality business that has the potential to be privatized, given previous failed privatization on attempt at $4.05 in 2014. We downgrade to Hold.

Source: Lim & Tan

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BRIEF-Hotel Properties Posts Qtrly Profit Attributable S$13.6 Million

May 14 (Reuters) - Hotel Properties Ltd :

QTRLY REVENUE S$152.2 MILLION VERSUS S$173.4 MILLION
QUARTER PROFIT ATTRIBUTABLE S$13.6 MILLION VERSUS S$87.5MILLION

Source: Reuters

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Ong Beng Seng has acquired 9,377,800 HPL Shares via market transaction.

https://links.sgx.com/FileOpen/_FORM1_O ... eID=580156

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HPL: Approaching the 10% free-float mark; privatisation on the cards?


Managing director and majority shareholder, Ong Beng Seng, purchased 12.4m Hotel Properties (HPL) shares at $3.45 each via his own account and investment vehicle, 68 Holdings on 27 Sep ’19, raising his stake to 60.49%.

Meanwhile, his brother-in-law and non-executive director David Fu also acquired 1.7m shares at $3.45 apiece via his private entity Avant Hotel, lifting his holdings to 4.99% from 4.67%.

Taken together, both Ong, Fu alongside HK-listed Wheelock & Co now control about 88% of the group.

Keeping in mind the SGX's listing requirement of 10% free float and the poor liquidity of the stock, it is not impossible that the friendly parties may opt to privatise the group.

Recall that in Oct '18, 68 Holdings joined forces with Wheelock & Co to take Wheelock Properties private.

The group currently owns various Four Seasons hotels and properties across the world and the newly acquired Castello del Nero five-star hotel in Tuscany, Italy.

Its hotel segment contributes the bulk of revenue (FY18: 87.5%), while its properties segment makes up the remainder.

The hospitality and real-estate player trades at a 0.94x P/B.

Source: Maybank KE Retail Research

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Hotel Properties ($3.76, up 21 cents) replied to the trading query by SGX-ST over the unusual price movements in the former’s shares on 08-Oct-19 and announced that it is not aware of any possible explanation.

At $3.76, market cap is S$1,959.5mln, trailing P/E is 44.3x, P/B is 1.0x, dividend yield is 2.7%, dividend payout ratio is 45.5% and its net debt position of S$729mln equates to net gearing
of 35%.

Source: Lim & Tan

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HPL Bond IPO, raising money from 1B bond facility.

"New SGD Perp Issue by Hotel Properties Limited (“HPL”) guided at 4.6% area.

Issuer: Hotel Properties Limited (“HPL”)
Issue: SGD Unsecured Fixed Rate Subordinated Perpetual Securities
Issuer / Issue Rating: Unrated
Tenor: Perpetual NC5
Initial Price Guidance: 4.60% area
Margin (Y/N): Marginable, can be supercharged.
Nett Yield After Leverage: 7.5% assuming final coupon is 4.45% and fund $85,000.
Redemption At The Option Of The Issuer: October 2024 & on every distribution payment date thereafter at par
Distribution: Reset at the end of Year 5 & every 5 years thereafter based on prevailing SGD 5Y SOR plus the Initial Spread
Distribution Step-Up: 1% step up at Year 10
Distribution Deferral: At Issuer's discretion. Any deferred Distributions are cumulative
Redemption Upon A Change Of Control Event: Issuer call at par; else 3% step-up.
Other Redemption: At par due to taxation reasons, accounting reasons, minimal outstanding amount
Form & Denomination: Registered/ SGD250K
Use Of Proceeds: Refinancing existing borrowings and financing workingcapital requirements
Clearing: CDP
Timing: Today’s business