KUALA LUMPUR: SBC Corp Bhd has entered into a heads of agreement (HoA) with HPL Hotels & Resorts Pte Ltd for the latter to purchase a hotel that SBC will be constructing in Cuscaden Road, Singapore.

In a filing with Bursa Malaysia yesterday, SBC said the indicative price of the hotel to be sold to HPL is between RM180 million and RM200 million.

The HoA will outline the preliminary agreement of the parties on the principal terms of the sale and purchase agreement (SPA) that will be executed in due course.

The expiry date of the HoA is Jan 31, 2015, or any other date mutually agreed upon by the parties.

“After the execution of the SPA, SBC shall construct and erect the building on the site, in accordance with the plans and specifications agreed between SBC and HPL, and in accordance with the building authorities in Malaysia for the building and operation of hotels and resorts,” said SBC.

SBC closed three sen higher to RM2.15 yesterday, bringing its market capitalisation to RM336.6 million.

This article first appeared in The Edge Financial Daily, on September 30, 2014.