Keck Seng Malaysia pays RM120m to buy shares in AccorInvest

PETALING JAYA: Keck Seng Malaysia Bhd (KSM) has subscribed to €25 million (RM120 million) worth of shares and Tracking Preferred Equity Certificates (TPEC) issued by A2I Holdings S.A.R.L, a conduit to purchase shares in hotel real estate group AccorInvest Group S.A.
The subscription was made through Brosna Ltd, a subsidiary incorporated in Hong Kong, through internally generated funds.
A2I is raising funds from various investors by issuing shares and TPECs.
The €25 million proceeds received by A2I from the subscriptions for the shares and TPECs will be used to acquire the AccorInvest shares no later than June 30, 2018.
An investment in AccorInvest is expected to provide an opportunity for KSM to gain exposure to a diversified portfolio of hotels mainly located in Europe with resilient income stream and opportunities for value creation.
Accor Invest has a current portfolio of 891 hotels, the majority of which are located in Europe, in the economy and midscale segments. Of the total, 324 are owned and 567 are operated under fixed or variable-rent leases.
Ho Kian Guan, Ho Kian Hock, Ho Kian Cheong, Chan Lui Ming Ivan, Ho Chung Kain, Ho Chung Hui and Ho Chung Tao are deemed to have interest in the transaction by virtue of their directorship and/or shareholdings in Keck Seng Investments (Hong Kong) Ltd, which is also investing €25 million in AccorInvest. Keck Seng Investments (Hong Kong) Ltd is listed on The Stock Exchange of Hong Kong Limited.
Ho Kian Guan is also personally investing €5 million (RM24 million) in AccorInvest under the same terms and conditions offered to KSM.