KUALA LUMPUR (BERNAMA) – Hotel owner and operator Impiana Hotels Bhd plans to develop a resort on Tioman Island with an estimated gross development cost of MYR40 million.
Wholly owned subsidiary Impiana Tioman Villas & Residences Sdn Bhd (ITVR) inked conditional agreements to acquire five contiguous parcels of land totalling 5.09 hectares, where it would build the resort, from Impiana Hotels’ executive chairman and major shareholder Datuk Seri Ismail @ Farouk Abdullah for MYR7.5 million.
In a filing with Bursa Malaysia, the company said the purchase consideration would be satisfied by issuing 83.33 million new shares in Impiana Hotels at nine sen apiece to the vendor Impiana Tioman Sdn Bhd, which is almost entirely owned by Farouk.
Impiana Hotels is considering to develop a resort on Tioman comprising about 35 to 40 villas, a swimming pool, a jetty, and other amenities such as spa facilities and dining outlets on the lands.
The group currently owns and manages nine hotels and resorts – three each in Malaysia, Indonesia and Thailand.
In addition, Impiana Hotels also proposed the capitalisation of the amount owing by it to real estate owner and developer Impiana Sdn Bhd (Impiana SB) of about MYR21.49 million via a combination of the issuance of 10.77 million new shares and 228 million new irredeemable convertible preference shares (ICPS-B), both at an issue price of MYR0.09 each.
The ICPS-B will be convertible at the ratio of one ICPS-B for one new Impiana Hotels share without any cash payment.
Impiana SB, in which Farouk has a direct stake of 73.7 per cent, is currently Impiana Hotels’ single largest shareholder with 32.59 per cent equity interest.