March 23, 2011 – Bangkok-based hospitality company Minor International Public Company just recently made an off-market cash takeover for all the shares in Oaks Hotel and Resorts formerly owned by a Brisbane company. After this new endeavour, it has been noted that the shares of Oaks hotels and resorts rose up to about thirty percent.
The company proposed to offer Oaks shareholders 35 cents for every share. After last Friday’s closing share price of 26 cents, it holds a 3f percent premium. This offer made Oaks’ share sore up high. Oaks shares increased by 7 cents or 28.8 percent which made the share price increase to 33 cents.
As compared to last week, the shares went down to 23.5 cents with decrease by 16.6 percent just after the board discarded chief executive and founder of Oaks hotels and resorts, Brett Pointon.
In late January, receivers were appointed to the two private companies of Mr. Pointon namely Centrepoint Holdings Pty Ltd and The Oaks Apartment Management Pty Ltd which jointly holds sixteen million dollars worth of shares in Oaks or utmost 34 percent shares.
Yet Minor International already owned and bought shares equivalent to 19.9 percent but 5 percent of which would still undergo approval of the Foreign Investment Review Board.
Minor International noted that the Oaks’ auditor admitted that there are deficits in the current assets to current liabilities in excess of 60 million dollars on the December 31 2010 accounts. Thus, this concern made them uncertain if Oaks Hotels and Resorts could still stay afloat and survive such discrepancy.
Oaks properties include CBD apartments, resorts, and villas located in several countries like Australia, New Zealand, and Dubai which capitalized for 45.2 million dollars.
On the other hand, Minor International has a 1.1 billion dollars worth of market capitalisation. It also owns 33 hotels in eight countries. Aside from hotels, it also has a 50 per cent stake in The Coffee Club brand. Thus, it is a very big company and a company whom you know will last.
