A fight for control in Oceania

1 min reading time

Published on 25/05/11 - Updated on 17/03/22

Two companies bid for a controlling stake in Oaks Hotels and Resorts.

On 4 April, Hospitality-On reported that a controlling stake in Australia's third largest franchise, Oaks Hotels and Resorts, was up for grabs.Minor’s share acquisition still requires regulatory approval.Minor Company PCL (which already owns 15 % of Oaks) made a cash bid of A$61 billion (43.6 B€) for the Brisbane-based group.Other groups that were reportedly interested in the 36.4% controlling stake in Oaks included Mantra Group, Accor Hospitality, The Ascott and Amalgamated Holdings.Three weeks ago, Minor International PCL acquired a 34% stake in the financially troubled Oaks.Today, a new bidder has surfaced wanting to take over the company.Singapore-based Edge Equity Investors has offered A$0.60 per share for Oaks, which tops the A$0.52 offer from Minor. However, Oaks board members are continuing to support the Minor offer. Minor owns 60.3% of all outstanding shares in Oaks.While Edge’s offer is higher, it is highly conditional, subject to financier due diligence and not an announced takeover offer. Edge’s offer stipulates that no party may acquire more than 50% of outstanding shares, meaning that Minor's purchase of a 34% stake earlier this month would have to be overruled, according to reports."In consideration of these factors, the board does not consider the Edge proposal as presented to be a superior offer and maintains its recommendation that Oaks shareholders accept Minor's offer of 52-cents-per-share, in the absence of a superior offer,” the Oaks board says in a statement.Minor’s share acquisition still requires regulatory approval.

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