Oaks bid lifts shares

Townsville Bulletin - - Investor -

SHARES in Oaks Ho­tels and Re­sorts Ltd have jumped al­most 30 per cent af­ter Bangkok-based Mi­nor In­ter­na­tional Pub­lic Com­pany Ltd made a takeover of­fer.

Mi­nor I nter­na­tional, a hos­pi­tal­ity com­pany, has made an off-mar­ket bid, of­fer­ing 35c cash for ev­ery Oaks share – a 35 per cent pre­mium on last Fri­day’s clos­ing share price of 26c.

Oaks shares closed up 7.5c, or 28.85 per cent, at 33.5c.

Shares in the em­bat­tled Bris­bane com­pany plunged to 23.5c last week af­ter the board sacked chief ex­ec­u­tive and com­pany founder Brett Poin­ton.

Re­ceivers were ap­pointed in late Jan­uary to two of Mr P o i n t o n ’ s p r i v a t e c o mpa­nies – Cen­tre­point Hold­ings Pty Ltd and The Oaks Apart­ment Man­age­ment Pty Ltd – which to­gether hold a 34 per cent ($ 16 mil­lion) stake in Oaks.

Last month, re­ceivers also t ook con­trol of an­other Poin­ton pri­vate com­pany, Oaks Apart­ments Man­age­ment, which holds the Aus­tralian and Metropole pubs a n d Hot e l M i n S o u t h Townsville’s Palmer St hos­pi­tal­ity precinct and the Grand Ho­tel in Glad­stone.

The Aus­tralian and the Grand were placed on the mar­ket last week in a ten­der cam­paign that closes on May 5.

Mi­nor In­ter­na­tional said yes­ter­day it had al­ready bought a 19.96 per cent stake in Oaks, 5 per cent of it sub­ject to For­eign In­vest­ment Re­view Board ap­proval.

‘‘ The 31 De­cem­ber 2010 ac­counts con­tain a state­ment from Oaks’ au­di­tor about the in­her­ent un­cer­tainty re­gard­ing Oaks’ abil­ity to con­tinue as a go­ing concern, and dis­close a deficit of cur­rent as­sets to cur­rent li­a­bil­i­ties in ex­cess of $ 60 mil­lion,’’ Mi­nor In­ter­na­tional

SACKED: Oaks Ho­tels and Re­sorts Ltd com­pany founder and chief ex­ec­u­tive Brett Poin­ton said in a state­ment. The Oaks port­foli o i ncludes CBD apart­ments prop­er­ties, re­sorts and vil­las in Aus­tralia, New Zealand and Dubai and the com­pany has a mar­ket cap­i­tal­i­sa­tion of $ 45.2 mil­lion.

Mi­nor In­ter­na­tional has a mar­ket cap­i­tal­i­sa­tion of $ US1.1 bil­lion, owns 33 ho­tels in eight coun­tries, along with many other in­ter­ests in­clud­ing a 50 per cent stake in The Cof­fee Club brand.

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