Minor International has confirmed a cash
takeover offer for all of the shares in the Australian based Oaks
Hotels & Resorts Limited.
Under the terms of the investment, Minor
International will offer Oaks shareholders 35 cents (A$) for every
Oaks share held. The offer values Oaks’ equity at approximately
A$61 million, equivalent to a total enterprise value of
approximately A$129 million.
Currently, Minor has already acquired a 14.96%
stake in Oaks Hotels & Resorts and has advised that it is set to
purchase a further 5%stake in the company subject only to FIRB
approval (Foreign Investment Review Board), bringing the overall
stake to 19.96%. The current 19.96% share acquisition reflects an
investment of A$12 million.
As part of Minor International’s
three core businesses which include hotels, restaurants and
lifestyle brands, the Minor Hotel Group has, up until now, boasted
a portfolio of 33 hotels operating in eight countries. The
investment in Oaks Hotels & Resorts is Minor’s first foray into
the Pacific and would double the company’s hotel interests to 71
properties across Asia, the Indian Ocean, the Middle East and Australasia.
Established in the early 1990s, the Oaks group
has developed into one of Australia’s largest hotel and resort
operators with a current collection of 38 hotels across Australia,
New Zealand and the Middle East. The 4-star hotel brand is one of Australia's leading
serviced apartment management companies.
William E Heinecke, CEO of Minor International
said, “Our board is excited by the opportunity to expand
Minor International’s extensive footprint to the Australian
market. Following the successful acquisition of a 50% interest in
The Coffee Club, we are keen to increase our investments in the
Australian market. We see Oaks’ unique apartment portfolio as a
valuable addition to our expanding resort and hotel portfolio
across Asia, the Indian Ocean, the Middle East and Africa and look
forward to adding significant value to the business in terms of
growth and expansion.”
Minor could well face competition from some well
known regional serviced apartment operators as well as other hotel
companies with a strong Australian base.
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