This article is from the Australian Property Journal archive
MINOR International has yesterday increased its takeover offer by 49% for Oaks Hotels & Resorts after grabbing a key majority stake in the company.
Minor reveals that it has been successful in acquiring the 34.4% shares in Oaks held by receivers and managers PricewaterhouseCoopers, lifting its total interest in the management letting rights company to 54.3%.
As a result, Minor is increasing its takeover price from 35 cents to 52 cents per share.
But the offer remains below the independent expert’s valuation range of 68 cents to 79 cents.
Oak’s board of directors has already rejected the first offer of 35 cents, but have not made a decision on the new offer.
Oaks chairman Doug Wong had previous describe the initial offer as unfair, not reasonable and said Minor was taking advantage of instability within the company.
The company is facing uncertainty as it has a deficit of current assets to liabilities in excess of $60 million.
Wong had hoped that a new competitive bid would emerge from a buyer of the shares held by PwC. But he had not taken into account that Minor would be the successful bidder for the shares.
Meanwhile Minor’s revised bid as become unconditional and extended the offer period to May 23.
Australian Property Journal
