KUALA LUMPUR (Sept 29): SBC Corp Bhd has entered into a Heads of Agreement (HOA) with HPL Hotels & Resorts Pte Ltd, for the latter to purchase a hotel that SBC will be constructing at Cuscaden Road, Singapore.

In its filing with Bursa Malaysia, SBC said the indicative price for the hotel, to be sold to HPL, is between RM180 million up to RM200 million, subject to further agreement of the parties.

The HOA will outline the preliminary understanding of the parties, regarding the principle terms of the sale and purchase agreement (SPA) that will be executed in due course.

The expiry date of the HOA is Jan 31, 2015, or any other date mutually agreed upon by the parties.

“After the execution of the SPA, SBC shall construct and erect the building on the site, in accordance with the plans and specifications agreed between SBC and HPL, and in accordance with the building authorities in Malaysia for the building and operation of hotels and resorts,” said SBC.

SBC closed 3 sen higher at RM2.15, bringing its market capitalisation to RM336.6 million.