Keck Seng subscribe shares to fund hotel investment

Keck Seng (Malaysia) Bhd has entered into a subscription agreement with A2I Holdings S.À R.L (A2I) to acquire shares and tracking preferred equity certificates (TPECs) issued by the latter for RM120 million cash.
Keck Seng told Bursa Malaysia yesterday the money from the subscription, which is done through its wholly-owned subsidiary Brosna Ltd, will be used to fund its investment in the European hotel operator, AccorInvest Group SA.
“An investment in AccorInvest is expected to provide an opportunity for Keck Seng to gain exposure to a diversified portfolio of hotels mainly located in Europe with resilient income stream and opportunities for value creation,” it said in the statement yesterday.
In an announcement on March 9, Keck Seng noted it intends to invest RM121 million in AccorInvest, which currently holds a portfolio of 891 hotels in the economy and mid-scale segments, located mostly in Europe. Of the total, 324 are owned and 567 are operated under fixed or variable-rent leases.