SAMSUNG CTC NOVATES SHANGRI-LA HOTEL CONTRACT WORKS TO SCTM

Samsung CTC on Wednesday signed a deed to novate the main contract works for Phase II of a Shangri-La hotel and real estate in Ulaanbaatar, Mongolia to SCTM, a 70:30 Samsung CTC and MCS Property joint venture.

Samsung CTC was awarded the tender for MNT375.9 billion (S$329.4 million) on May 18 this year by SA Sub, which is 51 per cent owned by Shangri-La Asia and 49 per cent by MCSP Holding, the parent company of MCS Property.

In a stock filing to SGX, Shangri La Asia said the terms of the novation deed were negotiated among SA Sub, Samsung CTC and SCTM on normal commercial terms and were arrived at after arms’ length negotiations among the three parties.

Formal contracts will be entered into between SA Sub and SCTM in due course.