Moelis Australia buys a hotel group for $677m, upgrades profit & earnings

Company News

by Jessica Amir

A Moelis Australia (ASX:MOE) Australian managed fund has entered into an agreement to buy the Redcape Hotel Group for $677 million (excluding transaction costs).

The financial services group says Redcape is the second largest gaming operator in New South Wales, while it has 25 gaming focused hotels in NSW and Queensland.

At the same time, Moelis Australia announced its FY17 underlying NPAT will increase by 25 per cent on its IPO forecast, to $21 million.

Its underlying EBITDA is expected to rise by 25 per cent on its IPO forecast, to $29 million.

Shares in Moelis Australia (ASX:MOE) closed over 0.3 per cent lower yesterday to $3.06.

 

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