Uni-Dragon calls off purchase agreement with The 13 Hotel
An arrangement made last November intended to sell 50% of South Shore Holding’s The 13 Hotel for just under $96m has been invalidated, after Uni-Dragon called off its purchase agreement.
The deal, the closing of which faced delay three times, initially helped South Shore make its way back onto the Hong Kong Stock Exchange after being suspended in October last year.
In addition to the now-lapsed Uni-Dragon purchase, South Shore is liable for deposits that had already been paid towards the sale of its holdings and will be forced to return that money.
South Shore confirmed it will refund the deposit to each of the purchasers as appropriate, and in accordance with the sale and purchase agreements, according to a filing released by the company this week.
The failed agreement also places the company in a precarious position with a bank in relation to a $320m outstanding credit line. South Shore may lack leverage now that the Uni-Dragon deal has fallen through.
South Shore added in its filing: “The company intends to continue with its endeavours to seek prospective buyer(s) and execute a sale of the hotel and/or the land, and will work with the bank on any further remedial measures as appropriate.”
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