Straits Trading sells mining firms, units in Far East Hospitality Trust

SINGAPORE - The Straits Trading Company said on Tuesday that it has sold two mining subsidiaries in Indonesia as well as 50.2 million units in Far East Hospitality Trust.

It received $42.7 million from the sale of the stake in Far East Hospitality Trust, the Singapore-listed group said. It intends to use these proceeds for other investments.

Straits Trading said it intends to "gradually divest" its interest in the trust in line with its aim of redeploying capital to grow and expand its businesses.

But hospitality will remain an "important engine of growth" for the group through its 30 per cent stake in Far East Hospitality Holdings, it added.

The group also said its subsidiary, Malaysia Smelting Corporation, sold Bemban Corporation Limited and PT MSC Indonesia.

The consideration for Bemban was US$400,000 in cash and a further payment of US$600,000 at a later date.

It had originally invested 61.1 million ringgit (US$18.7 million) in Bemban but had recognised a full impairment loss such that the net carrying amount of its investment in the company was zero as at Dec 31, 2012.

Straits Trading sold PT MSC Indonesia for US$1. The carrying amount of the group's investment in this company had also been fully impaired as at Dec 31, 2012.