South Shore Holdings’ negotiations for offloading 50% stake in The 13 Hotel cancelled
Hong Kong Stock Exchange-listed South Shore Holdings Limited, the company behind Macau’s magnificent hotel The 13, has confirmed that it has terminated negotiations that it had been pursuing to offload at least 50 per cent stake in the 200-room ultra-luxury property.
In its latest filing with the Hong Kong Stock Exchange, South Shore Holdings stated that the negotiations between its Uni-Dragon Limited subsidiary and a group of three potential suitors had been decisively stopped following the expiration of the deadline. It may be noted here that the deadline for reaching a deal had previously been extended three times.
Citing inside sources, emerging local media reports have suggested financial failing led to the collapse of the negotiations. The termination of the talks will most likely come as a big blow to South Shore Holdings Limited as the entity had been due to get more than $96.77 million from the deal but it will now have to refund the money deposited by the trio of suitors.
The promoter reportedly didn’t explain why the negotiations about the 50 per cent stake sale in The 13 Hotel collapsed but it stated that it had plans to continue its search for a potential partner interested in acquiring a stake in the property that is located along the border of Macau’s Cotai and Coloane districts. It also stated that it would work in partnership with the bank in relation to the term loan in the outstanding principal amount of around $366 million.
In its latest filing, South Shore Holdings stated, “The company intends to continue with its endeavors to seek prospective buyer(s) for the hotel and/or the land and execute a sale of the hotel and/or the land and will work with the bank in relation to the term loan in the outstanding principal amount of approximately $366 million as of March 31 on any further remedial measures as appropriate.”
Previously known as Louis XIII Holdings Limited, South Shore Holdings has for some time been struggling to meet its financial requirements. It was even compelled to request for a ‘standstill’ order in April this year after its bank pulled in a loan worth around $320 million.
The 13 luxury hotel, which is located 2.7 miles from the popular House of Dancing Water, offers sumptuous accommodations with a restaurant, free private parking, a state-of-the-art outdoor swimming pool, a bar, a shared lounge and a fitness center. Equipped with free WiFi, this 5-star property provides a 24-hour front desk, currency exchange, and room service for guests.