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Impiana Hotels plans to develop resort in Tioman

Impiana Hotels plans to develop resort in Tioman

12 Dec 2020

Hotel owner and operator Impiana Hotels Bhd plans to develop a resort on Tioman Island with an estimated gross development cost of RM40 million.

Wholly-owned subsidiary Impiana Tioman Villas & Residences Sdn Bhd (ITVR) yesterday inked conditional agreements to acquire five contiguous parcels of freehold land totalling 5.09 hectares, where it would build the resort, from Impiana Hotels’ executive chairman and major shareholder Datuk Seri Ismail @ Farouk Abdullah for RM7.5 million.

It said in a filing with Bursa Malaysia yesterday, the company said the purchase consideration would be satisfied by issuing 83.33 million new shares in Impiana Hotels at nine sen apiece to the vendor Impiana Tioman Sdn Bhd, which is almost entirely owned by Farouk.

Impiana Hotels is considering to develop a resort on Tioman comprising about 35 to 40 villas, a swimming pool, a jetty, and other amenities such as spa facilities and dining outlets on the lands.

The group currently owns and manages nine hotels and resorts — three each in Malaysia, Indonesia and Thailand.

In addition, Impiana Hotels also proposed the capitalisation of the amount owing by it to real estate owner and developer Impiana Sdn Bhd (Impiana SB) of about RM21.49 million via a combination of the issuance of 10.77 million new shares and 228 million new irredeemable convertible preference shares (ICPS-B), both at an issue price of nine sen each.

The ICPS-B will be convertible at the ratio of one ICPS-B for one new Impiana Hotels share without any cash payment.

Impiana SB, in which Farouk has a direct stake of 73.7%, is currently Impiana Hotels’ single largest shareholder with 32.59% equity interest.

Meanwhile, Impiana Hotels has also proposed that amendments be made to its constitution to facilitate the issuance of the ICPS-B pursuant to the proposed capitalisation.

The proposed acquisitions, it said, were in line with the group’s strategy to grow and strengthen its hospitality business and allow the company to launch the new resort on Tioman Island under its brand.

The company said the issuance of the consideration shares for the settlement of the aggregate purchase consideration, as well as the issuance of the capitalisation shares and ICPS-B for the repayment of advances from Impiana SB, would not involve any cash outflow, hence enabling cash reserves for operations.

Source: Bernama

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