New World Development buys 36% stake in Beames from CTFE

The consideration to be paid in cash.

New World Development (NWD) recently announced that it will purchase a 36% stakes in Beames Holdings Limited from its parent, Chow Tai Fook Enterprises (CTFE).

According to a research note from Barclays, Beames holds interests in a number of hotels in Hong Kong and South East Asia and some parts of the Shun Tak Centre in Sheung Wan.

The consideration for the acquisition is HK$3,619mn (subject to customary closing adjustment) and will be paid in cash.

Here's more from Barclays:

In addition, a shareholder’s loan of no more than HK$443mn will also be assigned to NWD. The remaining 64% stakes in Beames is already owned by NWD.

Citing reasons for the acquisition, NWD said it believed that through the acquisition of further interests in Beames, it will effectively consolidate its interest in hotel properties, which is consistent with its core business strategies.

Besides streamlining the structure of Beames, the increase in stake in the hotel properties will provide flexibility and a wider platform for investment which will enhance recurrent income and facilitate further merger or joint venture opportunity.

The deal is to be completed on 23 November and no voting from shareholders is required.