HPL jumps 5.5% after announcing that Ong Beng Seng will step down as managing director

[SINGAPORE] Shares of Hotel Properties Limited (HPL) rose on Monday (Apr 14) by over 5 per cent, following the company’s announcement that property tycoon and hotelier Ong Beng Seng is set to step down from his managing director position.

At 9.41am, the counter climbed 5.5 per cent or S$0.19 to S$3.59, with 6,100 securities changing hands, according to ShareInvestor data.

The share price inched down to S$3.55 at 11.03am, still up 3.5 per cent or S$0.12, after 9,100 securities were transacted. No married deals were recorded.

According to a bourse filing, the group explained that Ong, 79, was relinquishing his position as managing director as he wished devote more time to manage his medical condition. He will not be putting himself up for re-election as a director as well.

Ong will no longer hold both positions following HPL’s annual general meeting scheduled for Apr 29.

The property magnate has been receiving treatment for a form of white blood cell cancer, reports revealed in Feb.

The company did not disclose who Ong’s replacement in either position would be.

Known for bringing the F1 night race to Singapore, Ong in recent years has been embroiled in the high-profile conviction of former transport minister S Iswaran for accepting gifts as a minister and obstructing justice.

He was also named in some charges to which former minister Iswaran pleaded guilty, including abetting a public servant in obtaining of gifts, and one charge of obstruction of justice.

For the second half ended Dec 31, 2024, HPL posted a net profit of S$32.1 million, a dramatic plunge from S$578.2 million in the prior corresponding period. It did however, reverse the hotel player’s net loss of S$4.9 million recorded for its first half ended Jun 30, 2024. This translated to an earnings per share of S$0.0547, down from S$1.1024 in H2 FY2023.

As at 1.58pm, shares in HPL were trading S$0.12 or 3.5 per cent higher at S$3.55.