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Rowsley is set to expand its hospitality business in the Asia Pacific region with the planned acquisition of hotel management and consultancy firm, Ariva Pte. Ltd..
In an SGX filing, Rowsley revealed that it has inked a conditional sale and purchase agreement to acquire the entire issued and paid-up share capital of Ariva for up to S$10.6 million.
Payment will be made by way of cash and the allotment and issuance of new Rowsley shares at an issue price of S$0.15 each.
Rowsley noted that the final acquisition price is subject to terms and conditions set out in the sale and purchase agreement which includes the achievement of cumulative net profit after tax of S$5.2 million up till December 2019.
“The Ariva acquisition is financially profitable, and its contribution to the Rowsley Group is expected to increase over time as Ariva’s assets under management grows rapidly,” it said.
Ariva is founded in October 2008 by Cameron Ong, former Chief Executive Officer and Managing Director of CapitaLand’s The Ascott Group, and Jean-Claude Erne, former Senior Vice President, Product, Process and Procurement and Managing Director in Europe at Ascott.
The firm manages hotels and service apartments under its own and associate companies’ brands namely ARIVA, AMAR and LOUIS KIENNE as well as third party brands. To date, it has over 6,500 room keys under management and in the pipeline, spread across 47 properties in the Asia Pacific region.
As part of the deal, Ong and Erne will continue to lead and grow Ariva as executive chairman and executive director respectively, post-acquisition.
Cameron and Jean-Claude have a “proven track record in value creation, expertise in turning around distressed assets and making strategic investments,” said Rowsley.
“These skills will be invaluable for the expansion of the Group’s hospitality business in Asia.”
The proposed acquisition is not expected to have any materially impact the group’s net tangible assets or earnings per share for the current financial year ending 31 December 2016.
Nikki De Guzman, Editor at CommercialGuru edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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