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KHI sells stake in FRH for $12.6m |
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10/26/2006 9:32:24 AM |
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DUBAI — Kingdom Hotel Investments (KHI), the leading international hotel and resort investment company, chaired by Prince Alwaleed bin Talal, has sold part of its minority shareholding in Fairmont Raffles Holdings International (FRH) for $12.6 million to OMERS, the Ontario Municipal Employee Retirement System, a leading Canadian pension fund management company.
This transaction is further to OMERS' acquired stake in Fairmont Raffles Holdings following their recent acquisition of seven Fairmont managed hotels in Canada. Proceeds from the sale will be used for further expansion and development of the KHI portfolio.
KHI originally purchased shares in Fairmont Hotels & Resorts Inc. in October 2004 at a cost of $27.98 per share (total consideration of $9.1 million). In April 2006, KHI contributed its shares in Fairmont Hotels & Resorts Inc. to a new joint venture set up between Kingdom Hotels International and Colony Capital that acquired Fairmont and combined it with Raffles Hotels & Resorts, in exchange for which KHI obtained an approximate shareholding of 0.87 per cent in Fairmont Raffles Holdings. At that time KHI's shares were re-valued in aggregate at $14.7 million ($45 per share). Further, the Chief Executive Officer of KHI, Sarmad Zok, was appointed as a director on the Board of Fairmont Raffles Holdings.
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