SINGAPORE (Dec 17): Datapulse Technology announced that it is acquiring Hotel Aropa, a hotel located in Seoul, Korea, from Hotel Prima Co for a consideration of KRW 35 billion ($42.7 million).
See: Datapulse announces diversification plans with intended acquisition of hotel in Seoul
The 127-room midscale hotel is located near Seoul’s Myeongdong district in the Namdaemun area of Central Seoul. The hotel is developed on a commercial freehold land that measures about 742 sqm with a total gross floor area (GFA) of 5,758 sqm.
This acquisition is in line with the group’s expansion strategy to establish a new strategic revenue model. The board believes that the acquisition of this hotel would allow it to enhance shareholders’ returns by receiving stable income and capital appreciation through value added asset enhancement initiatives.
See: Datapulse eyes acquisition of KL hotel for diversification into hospitality industry
The group will be funding this acquisition through a combination of internal resources and bank borrowings.
The hotel was independently valued at KRW35.7 billion ($43.5 million).
The acquisition will be subject to the approval of the shareholders given that the consideration makes up 72.16%. of Datapulse's market cap, exceeding the ceiling of 20% under Singapore Exchange's listing rules.
See also: Questioning Singapore's corporate governance standards
Shares in Datapulse last traded at 27 cents on Friday.
