IBAC Corporation Agrees to Sell its 51% Interest in The Royal Arkansas Hotel & Suites for $2.5 Million Dollars
Aug 7, 2006 9:46:00 AM
Copyright Business Wire 2006
NEW YORK--(BUSINESS WIRE)--Aug. 7, 2006--
IBAC Corporation (PINKSHEETS:IBCX) Chairman, Edward W Hayter, announced today that IBAC Corporation has agreed to sell all of its shares of The Royal Arkansas Hotel & Suites Inc. to its minority partner International Hotel Management for $2.5 million dollars.
Mr. Wayne Burmaster President of IBAC Corporation said, "We have confidence in the long-term goals for the business, we will use this windfall to the company's advantage either with a share buyback or investment in other assets.
Mr. Burmaster added, "The Royal Arkansas Hotel & Suites is an excellent company and we have enjoyed our relationship with it, the company paid 1.1 Million Dollars for its 51% interest in 2004 so the windfall (Profit) of 1.4 Million Dollars in less than two years represents an exceptional profit."
The transaction, which is subject the customary normal closing conditions, including attorney approval, is expected to close within the next 30 day's.
The company in attempts to fortify its balance sheets considers this move as a positive step, as now the company will own all its properties 100% with no partners, and will allow the company to grow accordingly.
IBAC Corporation is a New York-based holding company operating through its subsidiaries within the Hotel, Food Service & Restaurant industries. IBAC now has operations in Florida, Tennessee & Arkansas. For more information, please visit: www.ibaccorp.com.
AI
