Shangri-La ... Feb 2009

Its bulk of shares (52.78%) is tightly held by Shangri-La Asia Ltd, which is backed by Kuok Group.

Aberdeen Asset Management plc owns a 5.58% stake in the group.

Its second largest shareholder is Stand Chartered Private Equity Ltd owns 22.21%.

Shangri-La is less exposed to the lowest tourist arrivals that are expected in 2009 as the group mainly focus on business travellers.

It owns and operates Shangri-La KL and Putrajaya, as well as Traders KL. In Penang, it runs Traders Penang and two resorts – Golden Sands Resort and Rasa Sayang Resort and Spa. In Kota Kinabalu, Sabah, the group owns the Rasa Ria Resort and Tanjung Aru Resort and Spa. Shangri-La also owns UBN tower and UBN Apartments, both located next to Shangri-La KL.

Industry observers say a privatization exercise could be in the pipeline for Shangri-La. However, Aberdeen and Standard Chartered does not expect it.

The stock has only 16% public float, which is less than Bursa’s listing requirement of 25%, the three substantial shareholders will have to eventually let go of some of their shares.

Shangri-La had not formulated any plans to increase the percentage of public shareholding spread and would apply for a time extension to comply with the prescribed spread.

Financial Results …

It posted a 15.5% decline in net profit for the nine months ended Sept 2008, mainly du to an asset write-off of RM17.1 million by Shangri-La KL as well as a major renovation programme that has resulted in the closure of some of its rooms and a drop in occupancy to 48% for the period, compared with 71% a year earlier.