Heeton Holdings says its wholly-owned subsidiary, Heeton Capital, has entered into a shareholders’ agreement with Astra Horizon Ventures and NineCo Investments in relation to a proposed joint venture, according to a Dec 3 bourse filing.
Under the agreement, a new joint venture (JV) company, QS Edinburgh, has been incorporated in SIngapore to acquire the entire equity interest of a target company, which owns an aparthotel. The aparthotel comprises 82 keys and is located in Edinburgh, UK.
The acquisition is expected to be partly funded by equity contribution and shareholders loans from the groups’ shareholders.
According to Heeton Holdings 5DP , the proportion of the loans to be contributed by each of the JV Partners will be in proportion to their respective shareholding in the JV company. The shareholding proportion of Heeton Capital, Astra Horizon Ventures and NineCo Investments stands at 85%, 10% and 5%, respectively.
The joint venture is expected to provide Heeton Holdings with an opportunity to develop sustainable and recurring revenue streams to achieve potential enhancement of shareholder value, and expand its investment portfolio, adds the group.
Upon completion of the proposed acquisition, Heeton Holdings is set to provide hotel management services to the JV company or its subsidiaries.
Shares in Heeton Holdings closed flat at 26.5 cents on Dec 3.
