BIL International said last night that its 46 per cent owned, British-listed subsidiary Thistle Hotels would sell 37 hotels for £600 million ( $1.98 billion).
The statement followed a request from BIL yesterday that its shares be suspended pending a price sensitive announcement.
On Monday, BIL shares soared 20 per cent, prompting
a "please explain" demand from the Singapore Exchange where the company has its primary listing.
BIL told the Singapore Exchange on Monday that it was "not aware of any information which might reasonably be expected to have a significant effect on the trading volume of its shares".
By 8pm yesterday, the situation had changed as BIL revealed a deal to sell a substantial part of Thistle's hotel portfolio, leaving Thistle with about £1 billion in hotel assets, mainly in London.
BIL chief executive Greg Terry said the deal was "very good news for shareholders. Thistle is by far our most important asset and this transaction demonstrates its true value."
BIL said the deal would help ease the shortfall between Thistle's share price and the value of its assets, with corresponding benefits on BIL's balance sheet.
The 37 hotels will be sold to Gamma Four, a subsidiary of private venture capital firm Euro & UK Property. Thistle will retain management contracts for the properties.
Thistle told the London Stock Exchange last week it was "in discussions with a third party about a possible material transaction."
