1. The investors have got only 9 working days to submit their EoI's.
2. Was an investor already selected to hand over the two hotels?
Today (October 22), the Finance Ministry issued a statement, a rather lengthy one, on the topic.
Via the EOI advertisement placed, interested parties have to indicate their business, financial strength and which hotel asset they have an interest in purchasing.
When they contact the financial advisers, the investors will be sent a simple one-page format to fill out basic information about themselves and information on the hotels that are non-confidential will be given to them.
If investors need more time to respond to the one-page format, they can request for this. Therefore, the expression of interest does NOT require a priced bid.
Why this is being done this way is that both hotels are governed by management agreements with Hilton and Hyatt International hotel management companies and these agreements have confidentiality clauses, which restricts the hotel owning companies from releasing sensitive commercial information.
It is for this reason that parties who express interest will be first shortlisted and then bound to sign a Non-Disclosure and Confidentiality Agreement.
Only after this is signed will the interested investors be given more than 100 pages of detailed financial and other information and given access to a security controlled data room.
It is after this that the transparent bidding process will start under the supervision of the relevant Cabinet appointed committee, where prospective investors will have ample time over several months to prepare financial bids and bid conditions. ______________________________
Though the explanation has been provided by the Ministry of Finance, is it practical? Here are a few examples;