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Indonesia’s Lippo Group has taken sole control of Singapore hotel operator Overseas Union Enterprise (OUE) (OVES.SI) after buying out its partner Malaysian billionaire Ananda Krishnan in a deal valued at $957 million.
A Lippo spokeswoman said the Indonesian group raised its effective stake in OUE to 88.5% from around 44% after buying a 23.85% direct stake in OUE along with a 40% stake in a firm called OUE Realty from firms linked to Krishnan.
OUE Realty, whose other shareholder is Lippo, owned 51.2% of OUE, which owns hotels in Singapore, Malaysia and China.
The deal values OUE at $11 per share and the deal is worth $957 million, Lippo said in statement, adding it intended to retain OUE's listing on the Singapore Exchange.
Shares of OUE, whose best-known properties are the five-star Meritus Mandarin and Marina Mandarin hotels in Singapore, rose 33% following news of the transaction.
Lippo is an Indonesian conglomerate whose businesses range from property to pay TV; while Krishnan, Malaysia’s richest man, controls several businesses including Malaysian mobile operator Maxis (MXSC.KL).
Bank of America’s Merrill Lynch (BAC.N) advised Lippo in the transaction.
