Shares in Hotel Properties Limited fell to an intra-day low of $5.39, seven cents lower than the Aug 1 close of $5.46, just as Ong Beng Seng, co-founder and former managing director, was about to plead guilty. Ong’s hearing was scheduled for 9.30am today (Aug 4).
In court, Ong admitted to the charge of abetting the obstruction of justice in a case linked to former transport minister, S. Iswaran.
While the prosecution said they would have asked for an eight-week jail term for Ong, they will be exercising judicial mercy and are seeking a maximum fine instead, given Ong’s multiple medical conditions. Judicial mercy refers to circumstances where Singapore’s courts have to mete out a sentence that is more lenient than what the offence would otherwise warrant.
Following the hearing, shares in HPL rose by 9 cents or 1.6% up to $5.55.
According to a recent Bloomberg report quoting unnamed sources, HPL is looking to reduce its stakes in its Orchard Road assets, Forum Shopping Mall and voco Orchard. The firm, however, said that there was “no certainty” that the discussions would “result in any transaction”.
On May 2, DBS Group Research analysts Derek Tan and Tabitha Foo floated the possibility of a stake sale in the Orchard Road project. HPL had secured the green light from authorities to develop its three Orchard Road properties into a 1.23 million sq ft mixed-use development. The properties are: The Forum, voco Orchard and HPL House.
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Ong is expected to be sentenced on Aug 15.
