SINGAPORE (Oct 4): Datapulse Technology is seeking to acquire a hotel located near the Myeongdong district in Seoul, Korea, as part of its plans to expand the company’s core business from optical disc manufacturing to include hotel and hospitality investments.  

In an Oct 3 filing to the SGX, Datapulse announced having signed signed a letter of intent (LoI) for the acquisition with an unnamed private company in Korea on Oct 1.

The group believes its acquisition will provide an additional and recurring revenue stream, as a catalyst into the property sector and hospitality sector – specifically which its board believes has strong growth potential.

Upon the successful acquisition of the hotel property in Seoul, Datapulse says it intends to expand its core business to focus on the acquisition or investment in hotels or hospitality assets, subject to shareholders’ approval at an EGM.

Third party service providers will be engaged to provide hotel or hospitality management services for the acquired assets, as Datapulse will instead focus on the investing in property, hotel and hospitality assets alone for the benefit of receiving potential property income and capital appreciation.

Further, the group notes that its non-independent chairman and substantial shareholder Aw Cheok Huat also has controlling shareholdings in ICP Ltd, which is currently also engaged in the hotel and hospitality sector.

ICP owns a hotel in Kuala Lumpur, Malaysia, previously known as Geo Hotel. It was recently rebranded to Travelodge Central Market (TLCM). Datapulse emphasises that except for save for TLCM, ICP’s focus is on third-party hotel management, and that there are no plans for ICP to enter into capital-intensive acquisitions at present.

Datapulse highlights that while it may have an interest in a common sector with ICP, the nature and scope of their businesses are different. If Datapulse is to engage ICP to provide hotel management services, the group says the transactions will be made in accordance with all applicable regulatory requirements, and by the company’s policies and procedures.

It adds that Aw will recuse himself and abstain from any determination by the board on such interested party transactions.

Datapulse’s announcement comes months after it entered into a LoI with ICP to acquire MHI MY 1, a joint venture company which owns TLCM, then known as Geo Hotel.

The group’s recent diversification efforts include buying a shampoo business, over which it was chided by Singapore Exchange Regulation (SGX RegCo) for failing to conduct proper due diligence for the transaction.  

Shares in Datapulse closed 1.82% lower at 27 cents on Wednesday.