CHINA Pacific has completed due diligence over its investment in Oaks Hotels & Resorts.
As a result, China Pacific will become a cornerstone investor in the group, by way of a placement of shares to increase China Pacific’s 5.5% stake in Oaks to 19.9% of the total shares on issue post the placement.
Oaks announced that 27,935,679 new shares will be issued to China Pacific at 35 cents each to raise $9.78million, subject to Shareholder approval at a General Meeting. It is expected that the General Meeting will be held in late September.
Oaks’ CEO Brett Pointon confirmed that, as a result of the placement, the prior conditional agreement entered into by the companies privately controlled by him to sell up to approximately 19.9% of Oaks issued capital to China Pacific would not proceed.
Meanwhile the company has appointed Douglas Wong to the board as a non-executive director.
Wong is the managing director of China Capital Asset Management Limited, a Hong Kong based private asset management company and the Australian affiliate of Yorkshire Capital Hong Kong.
Australian Property Journal
