Oaks bid lifts shares
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.