SINGAPORE - Investment holding firm HL Global Enterprises disclosed on Wednesday (May 31) it had entered a conditional sale and purchase agreement to sell its entire interest in a subsidiary holding its hotel properties in China to Natural Apex.
Natural Apex, an affiliate of Hong Kong-listed Jingrui Properties, will pay about 550 million yuan (S$111.31 million) for the holding company, LKN Investment International.
HL Global noted the hotel's performance has been affected by the oversupply of hotels rooms in Qingdao, China, affecting the group's financial performance.
The core businesses of the group will still comprise hospitality operations, property development and investment holding.
HL Global will get net proceeds of about $98 million, to be used to repay an unsecured loan of $68 million, among other things.