Photo: Hilton's website
A spokesperson from City Developments Limited (CDL) says the group is “under no pressure” to divest any of its assets despite it receiving “unsolicited offers” from time to time.
“We are constantly exploring divestment and acquisition opportunities as they arise to enhance shareholder value. This is in line with the group’s strategy of capital recycling,” adds the spokesperson.
“If there are material developments on divestment and acquisition matters, the group will issue an announcement.”
The comment comes after The Korea Herald, South Korea’s largest English-language daily, ran an article stating that CDL Hotel Korea is planning to sell the luxury establishment for KRW1 trillion ($1.19 billion) on May 25.
SEE:CDL's China deal is a cautionary tale
CDL Hotel Korea is the Korean arm of CDL and the largest shareholder of Millennium Hilton, a five-star luxury hotel located in the middle of Seoul.
According to the report, CDL Hotel Korea is planning to let Igis Asset Management take over the hotel.
Igis is said to transform the building into an office space.
Igis declined to confirm the alleged acquisition.
The Millennium Hilton saw a decline in bookings for accommodations and weddings following the Covid-19 outbreak and amid travel lockdowns in the world.
As at 11.10am, shares in CDL are trading 3 cents lower or 0.4% down at $7.64.
