By Clyde Mooney
While the specifics remain under wraps, a deal that stands to upsize the Australian Leisure & Hospitality Group (ALH) to the biggest hotelier in NSW looks like going ahead.
For abound six months speculation has been rife that the Laundy Hotel Group (LHG) could expand its portfolio of 47 hotels to include another 20 venues currently owned by the embattled Redcape Property Fund and run by National Leisure and Gaming (NLG).
Should the Laundy sale go ahead, ALH is expected to acquire the long-term operation of the hotels.
The ALH, and its majority shareholder Woolworths, have approached the ACCC for approval of the sale, having completed their due diligence period.
Today (May 19) saw the end of the exclusivity period of the document relating to the sale, and both Redcape and NLG released statements that LHG have expressed interest in acquiring the freeholds, due diligence has been completed and Redcape is currently in negotiation toward the finalization of the terms of the transaction documents.
As publicly listed companies the two parties are required to keep the market informed of key developments.
Redcape closed on the ASX yesterday at $0.26 – more than 200 percent up on its low of around $0.08 in February this year.
NAB should take ownership of the reckless decision to lend millions of dollars to NLG on a fundamentally flawed business model, impossible for it to EVER make a profit with the ridiculous rent they pay.
Give the shareholders a break and forgive the remaining debt after the sale to LHG and ALH.