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Mandarin Oriental Completes The Sale Of Its 40% Ownership Interest In Kahala Mandarin Oriental, Hawaii

Hamilton, Bermuda: 8th June 2005 - Mandarin Oriental International Limited (€˜Mandarin Oriental') announced today that its wholly owned subsidiary, Mandarin Oriental Holdings (USA), Inc., (the €˜Company'), has completed the sale of its 40% interest in the partnership that leases the Kahala Mandarin Oriental hotel in Hawaii (the €˜Hotel') to its 60% partner, Kahala Royal Corporation (€˜KRC').

The Company exercised its put option in January 2005 pursuant to its rights under its partnership agreement with KRC. On completion, the Company received a gross consideration of US$97 million, which includes the repayment of US$10 million partnership debt owed to the Company. After utilization of estimated US tax losses, the post-tax gain on this disposal is approximately US$36 million.

The sale proceeds received will be applied towards the Group's general corporate purposes, including pursuing its development strategy. Mandarin Oriental Hotel Group will continue to manage the Hotel under existing management contracts.

As at 31st December 2004 the carrying value of the Company's interest in the partnership, including partnership debt, was US$46 million, and for the year ended 31st December 2004 its share of profits, management fees and license fees generated was some US$3 million.