April 15 (Bloomberg) -- Hotel Properties Ltd., owner of the Four Seasons hotels in Singapore and Bali, jumped the most in almost five years after founding shareholders agreed to buy the stock they don’t own for S$749 million ($597 million).
The shares surged 13 percent to S$3.53 at the close of trading in Singapore, their biggest gain since May 2009. A company led by Managing director Ong Beng Seng and Wheelock Properties Singapore Ltd., which jointly own 41.91 percent through six stakeholders, offered to buy the shares at S$3.50 each, according to a statement to the Singapore stock exchange.
Hotel Properties, which also owns the Hilton and Concorde properties in Singapore, has 28 resorts and hotels in countries including the U.S., Malaysia and the Maldives. It also develops luxury condominiums in the island-state and Thailand. The decision to combine will help “enhance value over time,” the company said in the statement.
“The partnership between Ong Beng Seng and Wheelock will work out well,” said Terence Wong, head of research at DMG & Partners Securities Pte in Singapore. “Hotel Properties has underperformed compared to their potential so this venture will help in co-development of properties.”
Wheelock Properties rose 4 percent to S$1.815, the biggest increase since March 2012.
Ong owns the majority of Cuscaden Partners Pte, which in turn holds 60 percent of the venture making the bid, according to the statement. Wheelock’s Nassim Developments Pte owns a 40 percent stake in the joint venture.
To contact the reporter on this story: Pooja Thakur in Singapore at email@example.com
To contact the editors responsible for this story: Andreea Papuc at firstname.lastname@example.org Tomoko Yamazaki