News

Advance Synergy Berhad ("ASB") Proposed Sale And Leaseback (With Option To Re-purchase) Of Holiday Villa Alor Setar, Holiday Villa Cherating And Holiday Villa Langkawi For A Total Cash Consideration Of A Maximum Of RM105 Million ("Proposed Transactions")

BackDec 13, 2005
General Announcement
Reference No AS-051213-66455
Company Name : ADVANCE SYNERGY BERHAD
Stock Name : ASB
Date Announced : 13/12/2005


Type : Announcement
Subject : ADVANCE SYNERGY BERHAD ("ASB")
Proposed sale and leaseback (with option to re-purchase) of Holiday Villa Alor Setar, Holiday Villa Cherating and Holiday Villa Langkawi for a total cash consideration of a maximum of RM105 million ("Proposed Transactions")

Contents :

We wish to inform the Exchange that Alor Setar Holiday Villa Sdn Bhd ("ASHV"), Cherating Holiday Villa Berhad ("CHV") and Langkawi Holiday Villa Sdn Bhd ("LHV"), all subsidiaries of ASB, had each accepted an offer from Amanah Raya Berhad ("the Purchaser") to acquire Holiday Villa Alor Setar, Holiday Villa Cherating and Holiday Villa Langkawi ("the Hotels") respectively at a final cash purchase price to be agreed by the parties but subject always to a maximum amount of RM30 million, RM23 million and RM52 million for each of the respective Hotels and subject to the valuation by a Registered Valuer appointed by the Purchaser.

Simultaneously, the Purchaser will leaseback each of the Hotels to ASHV, CHV and LHV separately for a period of ten (10) years with an option to extend for another period of five (5) years ("Leaseback"). The Leaseback is guaranteed by Alangka-Suka Hotels & Resorts Berhad, a subsidiary of ASB and the holding company of ASHV, CHV and LHV. The net rental of the Leaseback for a term of ten (10) years (calculated based on the final purchase price) is as follows:-
Year 1 to Year 3 - 7.00% per annum
Year 4 to Year 6 - 7.50 % per annum
Year 7 to Year 10 - 8.00% per annum
The net rental of the Leaseback for the extended period of five (5) years will be at a rate to be mutually agreed by both parties.

ASHV, CHV and LHV each have an option to buy back from the Purchaser the respective Hotels at the same consideration paid by the Purchaser now for each of the Hotels amounting to a total consideration of up to RM105 million upon the expiry of the Leaseback period.

The Proposed Transactions are subject to such terms and conditions of formal agreement(s) to be entered into between the Purchaser and ASHV, CHV and LHV respectively.

None of the directors, major stockholders and/or persons connected with the directors and major stockholders of ASB has any interest, direct or indirect, in the Proposed Transactions.

The Board of Directors of ASB, after careful deliberation, is of the opinion that the Proposed Transactions is in the best interest of ASB.

A separate announcement will be released upon execution of the said formal agreement(s).

[This announcement is dated 13 December 2005]