Berjaya Land plans to exit Vietnam hotel business

PETALING JAYA: Berjaya Land Bhd (BLand) plans to exit from its Vietnam-based international five-star hotel business in a move to monetise yet another asset in the country.

The company, which is controlled by tycoon Tan Sri Vincent Tan, told the stock exchange yesterday that TPC Development Ltd, a wholly-owned subsidiary of Berjaya Leisure (Cayman) Ltd, would be disposing its entire 75% stake in its joint-venture TPC Nghi Tam Village Ltd (TPC Village) for 1.24 trillion Vietnam dong (RM222.18mil).

Berjaya Leisure is wholly-owned by BLand.

The 75% stake in TPC Village would be acquired by Hanoi Hotel Tourism Development Ltd Liability Company. Meanwhile, the remaining 25% would continue to be owned by Thang Long GTC Joint Stock Company.

For context, TPC Village is the operator of the five-star Intercontinental Hanoi West Lake Hotel, which commenced operations in 2007.

According to BLand, the cost of investment in TPC Village was 686.88 billion Vietnam Dong (RM122.62mil). The stake disposal would result in an estimated gain of about RM192.33mil.

The cash proceeds from the equity interest sale would be utilised for BLand’s working capital.

“The proposed disposal represents an opportunity for the BLand Group to divest its investment in TPC Village.

“In conjunction with the proposed disposal, all amounts owing by TPC Village to TPC Development totalling US$71.63mil (RM298.2mil) would also be fully settled by TPC Village,” stated the company.

BLand added that the proposed disposal was not subject to the approval of its shareholders.