Mandarin Oriental International has received a takeover proposal from potential buyers for its The Excelsior hotel in Hong Kong, the company said in a filing with the Singapore stock exchange yesterday.
The firm had in June undertaken a review of its strategic options with regard to The Excelsior, which included testing market interest in the possible sale of the property. Proposals from purchasers received since "will form the basis for further consideration of the company's strategic options", it said in the filing.
It, however, added that no assumption should be made regarding whether the property will be sold. "A further announcement will be made as required," it said.
The company declined to reveal the identity of the bidders or the size of the offers.
However, according to the South China Morning Post (SCMP), suitors for the four-star hotel include Sun Hung Kai Properties, Hysan Development and a joint venture between Chinese Estates Holdings and China Evergrande Group.
The 848-room hotel is likely to be valued at between HK$24 billion and HK$34.2 billion (S$4.2 billion and S$5.9 billion), the SCMP report said. That translates to between HK$35,000 and HK$50,000 per sq ft, with a total gross floor area of 684,000 sq ft.
Mandarin Oriental operates 30 hotels and eight residences in 20 countries and territories. The Excelsior is a leading four-star hotel in Hong Kong .
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21%
Percentage rise of Mandarin shares on the SGX to US$2.56. As many as 6.18 million shares were traded yesterday.
Mandarin shares closed 21 per cent higher on the SGX at US$2.56. As many as 6.18 million shares were traded yesterday. The company made the announcement after the market closed.
