Billionaire Entrepreneur Increases Stake in Hotel Properties Limited

SINGAPORE – Billionaire entrepreneur Ong Beng Seng has substantially increased his influence over Hotel Properties Limited (HPL) by acquiring an additional 150,000 shares, as confirmed by a bourse filing on January 9. This off-market transaction, priced at $3.58 per share, has catapulted Ong's total stake to an impressive 60.22%.

As it stands, Ong holds a deemed interest in 206.4 million shares of HPL, which includes 179 million shares through 68 Holdings, a firm controlled by Cuscaden Partners, further cementing his grip on the company. His wife, Christina Ong, contributes 23.45 million shares, while Comojo Holdings and Reef Holdings add 2.95 million and 1 million shares, respectively.

Impact on Hotel Properties Limited Amid Legal Challenges

This growing stake puts HPL, renowned for its collection of luxurious hotels and properties, even more firmly under Ong's control. However, this acquisition comes at a time when Ong faces significant legal challenges. He was arrested on July 11, 2023, in connection with a scandal involving former Transport Minister S Iswaran, who has pleaded guilty to receiving gifts while in office. Ong has been charged with abetting a public servant to obtain gifts and obstructing justice.

HPL’s Confidence in Ong’s Management

Despite these allegations, HPL has expressed confidence in Ong's capabilities as managing director, stating that he remains suitable to fulfill his responsibilities within the company. The Board of Directors and the Nominating Committee are actively monitoring the situation and will continue to evaluate Ong's role as the case unfolds.

Ong’s Background and Future Outlook

Ong, best known for introducing the Singapore Grand Prix in 2008 after securing the deal through his connections with F1 executive Bernie Ecclestone, now faces a potentially turbulent future. While the company has yet to comment on how these legal issues may affect operations or Ong's long-term position, stakeholders can expect ongoing communication from HPL as more details emerge.

Conclusion: The Business World Watches Closely

As the saga continues, the business world's eyes remain fixed on Ong's moves and the implications they hold for both his personal future and that of Hotel Properties Limited. Could this increase in shares be a strategic move to bolster confidence amid adversity? Only time will tell!