IPC Corp: Share price surged 25% this morning, after the group announced that it was disposing sevel hotels in Japan to GK Nishi Nihon and GK Shinsaibashi Jisho for JPY14.94b (~$172.2m).
Based on the group’s FY14 financial statements, the aggregate market value of the seven hotels is JPY10.36b (~$119.4m), and that the proposed disposal is expected to result in a net gain of JPY2.7b ($31.1m) or $0.365 per share.
The proposed disposal will allow IPC to unlock the value of the seven hotels acquired and held through the last few years.
Following completion, the board intends to distribute the net proceeds from the proposed disposal to shareholders by way of a capital reduction exercise.
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