Is Straco Corporation buying Singapore Flyer?
Thanks to valuebuddies forum, one forummer speculated that the recent announcement by Straco Corporation that it has set up a Singapore incoporated subsidiary called “Bay Attractions” and a February 2014 CIMB initiation report on Straco mentioned that “Straco is currently looking at the potential acquisition of a distressed tourism asset in Asia in 1Q14. If the acquisition successfully goes through, this will be the first tourist attraction that Straco will operate outside of China. The asset has a project size exceeding S$100m, and Straco is looking to acquire a 90% stake, with the remaining 10% stake going to a strategic shareholder. While
management has guided that the project will not be as profitable as the Shanghai Ocean Aquarium, the project is an area in which it has some expertise and it is confident that it can run well. The positive is that this project will diversify the group’s revenues outside of China and the aquarium segment.” could be pointing to the fact that Singapore Flyer is the acquisition target of Straco.