SINGAPORE (June 3): A Hong Kong property company plans to take a 70% stake in the manager of Eagle Hospitality Trust.
Hong Kong-listed Far East Consortium International Limited has up to July 14 to complete a deal with Urban Commons, sponsor of EHT.
Approval from the Monetary Authority of Singapore has been sought.
If the deal goes through, FECIL will then proceed to help restructure EHT, which is deemed to have defaulted on its loans and is suspended from trading as the market regulators begin their probes.
FECIL runs the Dorsett chain of hotels, among other properties.
Given that talks between FECIL and Urban Commons is exclusive in nature, the Special Committee set up to restructure EHT will not be able to consider other potential deals for now.
According to EHT’s response to SGX RegCo queries on June 3, the Special Committee, which consists of EHT’s independent directors, had received from a number of parties non-binding, preliminary and indicative expressions of interest.
“These EOIs were received from credible and reputable asset management companies and/or institutional investors,” says EHT.
Urban Commons, the EHT sponsor, is held by Howard Wu and Taylor Woods. The duo resigned as chairman and vice chairman of EHT’s board late last month.
