Keck Seng to buy hotel investment platform for RM121m

PETALING JAYA: Keck Seng (Malaysia) Bhd (KSM) is buying a stake in hotel investment platform AccorInvest Group SA for RM121 million to gain exposure to a diversified portfolio of hotels in Europe with resilient income stream and opportunities for value creation.
AccorInvest, which is owned by European hotel giant Accor SA, is the world leader in hotel real estate, with a current portfolio of 891 hotels.
KSM, which is involved in plantation, hotel and property businesses, told the stock exchange that a special purpose vehicle will be set up in which the group together with other investors will acquire the shares of AccorInvest.
However, it said the transaction, which will be satisfied by internally generated funds, is subject to certain regulatory approvals and will be submitted to the works council and a shareholders' meeting of Accor SA for consultation.
The agreement is expected to be finalised and signed by the respective parties in the second quarter of 2018.
KSM slipped 6 sen or 1.37% to RM4.32 with some 14,500 shares traded.