SINGAPORE - Singapore-listed Rowsley is further expanding its hospitality business with the acquisition of Ariva, a hotel management and consultancy firm.
This comes about a year after the firm, which is controlled by Singapore businessman Peter Lim, entered the sector via several investments in Manchester in Britain.
Ariva has over 6,500 room keys under management and in the pipeline, spread over 47 properties in the Asia Pacific region.
It was founded in Oct 2008 by Mr Cameron Ong, formerly chief executive and managing director of The Ascott Group, and Mr Jean-Claude Erne, formerly senior vice president of product, process and procurement, and managing director in Europe at Ascott.
As part of the deal, Mr Ong and Mr Erne will continue to lead and grow Ariva as executive chairman and executive director respectively, Rowsley said.
Rowsley has signed a conditional sale and purchase agreement to buy the entire issued and paid-up share capital of Ariva for up to S$10.6 million.
It is paying by way of cash and the allotment and issuance of new Rowsley shares at an issue price of 15 cents each.
The final purchase price is subject to terms and conditions set out in the sale and purchase agreement, which includes the achievement of cumulative net profit after tax target of S$5.2 million up till Dec 2019.
Rowsley said in a statement that Mr Ong and Mr Erne "have a proven track record in value creation, expertise in turning around distressed assets and making strategic investments. These skills will be invaluable for the expansion of the group's hospitality business in Asia."