DATAPULSE Technology in a regulatory filing on Thursday reiterated that it is paying less than an independent valuation for a Seoul hotel it plans to acquire, after the 35 billion won deal came under some criticism.
The media storage company said that hotel supply growth in Seoul is expected to “stabilise” due to a decrease in pipeline of new hotel developments and strong demand from a recovery of tourist arrivals, quoting a November 2018 report by real estate consultant JLL. Datapulse said this was further supported by findings from a study it commissioned with a hospitality research consultancy.
Its filing, which was in response to articles published by Professor Mak Yuen Teen on his website, associate professor of accounting at the NUS Business School, urged shareholders to consider the reasonableness of the hotel purchase price, clarity of terms and conditions and the substance of the proposed structure. Prof Mak had said he would vote against the resolution.