Buyer interested in acquiring Oxley's Mercure and Novotel hotels for $950m

Under the terms of the letter of intent, upon receipt of the sum of S$9.5 million as a non-refundable deposit, the buyer will be entitled to carry out due diligence during the period until April 15, 2019.
Under the terms of the letter of intent, upon receipt of the sum of S$9.5 million as a non-refundable deposit, the buyer will be entitled to carry out due diligence during the period until April 15, 2019.PHOTO: ST FILE

SINGAPORE - Property developer Oxley Holdings has accepted a letter of intent (LOI) for the purchase of its Mercure and Novotel hotels along Stevens Road for $950 million. It was not announced who the buyer was.

The letter of intent is non-binding and is subject to the parties entering into a definitive sale and purchase agreement, Oxley said in an announcement late on Thursday (Jan 10) evening.

The consideration was agreed on a "willing buyer-willing seller" basis, taking into account the prevailing market conditions.

Under the terms of the LOI, upon receipt of the sum of $9.5 million as a non-refundable deposit, the buyer will be entitled to carry out due diligence during the period until April 15, 2019.

The buyer will then pay a sum of $38 million on Feb 28, and a further sum of $47.5 million on the signing date of the definitive sale and purchase agreement or April 15, whichever is earlier.

After a trading halt from 3pm on Thursday, shares in the developer will resume trading when market opens on Friday.