Yong Tai in RM160mil hotel sale

PETALING JAYA: Yong Tai Bhd (YTB) is proposing to dispose of a five-star hotel known as “Courtyard by Marriott Melaka” in Melaka to Southern Envoy Sdn Bhd for RM160mil.

In a filing with Bursa Malaysia, YTB said the proposed disposal will allow the group to repay existing bank borrowings and payment of outstanding progress claims to the hotel contractor, thus improving its gearing level.

“Upon completion of the proposed disposal, YTB Group is able to improve its financial performance and realise a gain,” it said. YTB said it is also proposing a special issue that will entail the issuance of up to 190.05 million new YTB shares to help raise funds.