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Fri Jun 18, 1999
King George to Merge with Allied Hotels
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King George Development Corporation ("King George") is pleased to announce that it has entered into an agreement in principle to conclude a business combination with Allied Hotel Properties Inc ("Allied Hotels"), a private company incorporated under the Canada Business Corporations Act. Allied Hotels' principal business is the development and acquisition of first-class hotel properties in Canada. Its current portfolio includes the Crowne Plaza Hotel Georgia, the Holiday Inn Vancouver Downtown Hotel, the Delta Vancouver Suite Hotel, the Delta Pacific Resort & Conference Centre and the Delta Vancouver Airport Hotel & Marina (all in Greater Vancouver) plus the recently branded Crowne Plaza Toronto Don Valley Hotel in Ontario. Allied Hotels also holds a number of development sites with potential for future hotel operations.
King George and Allied Hotels will merge such that the shareholders of Allied Hotels and the shareholders of King George will hold approximately 70% and 30% respectively of the shares of the merged company. It is intended that this company will be renamed Allied Hotel Properties Inc. Prior to the merger, King George will restructure itself by transferring certain non-hotel assets into a wholly-owned subsidiary and transferring the shares of the subsidiary to the shareholders of King George. The assets of this company will include the 905 West Pender office building, a $3.4million mortgage portfolio and a 50% interest in King George Park Ltd, owner of a 14 acre mixed use residential and commercial development site in Surrey, adjacent to the King George SkyTrain station. This site, when fully developed, will comprise over 1,000 residential units and 670,000 ft of commercial and retail space.
The assets of King George remaining in the merged company will include the 307 room Crowne Plaza Chateau Lacombe Hotel in Edmonton and a prime hotel / commercial development site at Dunsmuir and Granville Streets in Vancouver with a buildable floor area in excess of 300,000 ft.
The proposed transaction is subject to King George obtaining shareholder approval at an Extraordinary General Meeting called for this purpose, Allied Hotels receiving shareholder approval, and all necessary corporate and regulatory approvals. The proposed arrangement is intended to form a high quality hotel ownership company with increased access to capital markets. The merged company will hold three of the six Crowne Plaza hotels in Canada and be well positioned to broaden its portfolio of hotel properties across Canada with combined assets in excess of $250 million.
On behalf of the Board of Directors:
Mr. Andrew E. Saxton
Chairman and Director
King George Development Corporation
THE VANCOUVER STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. |
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You can view the Next News Releases item: Thu Oct 7, 1999, King George Receives Shareholder & Court Approval to Merge with Allied Hotels
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