Minor Targets Oaks Hotels & Resorts Takeover
AUSTRALIA – Minor International has confirmed a cash takeover offer for all of the shares in the Australian based Oaks Hotels & Resorts Limited.
Under the terms of the investment, Minor International will offer Oaks shareholders 35 cents (A$) for every Oaks share held. The offer values Oaks’ equity at approximately A$61 million, equivalent to a total enterprise value of approximately A$129 million.
Currently, Minor has already acquired a 14.96% stake in Oaks Hotels & Resorts and has advised that it is set to purchase a further 5%stake in the company subject only to FIRB approval (Foreign Investment Review Board), bringing the overall stake to 19.96%. The current 19.96% share acquisition reflects an investment of A$12 million.
As part of Minor International’s three core businesses which include hotels, restaurants and lifestyle brands, the Minor Hotel Group has, up until now, boasted a portfolio of 33 hotels operating in eight countries. The investment in Oaks Hotels & Resorts is Minor’s first foray into the Pacific and would double the company’s hotel interests to 71 properties across Asia, the Indian Ocean, the Middle East and Australasia.
Established in the early 1990s, the Oaks group has developed into one of Australia’s largest hotel and resort operators with a current collection of 38 hotels across Australia, New Zealand and the Middle East. The 4-star hotel brand is one of Australia’s leading serviced apartment management companies.
William E Heinecke, CEO of Minor International said, “Our board is excited by the opportunity to expand Minor International’s extensive footprint to the Australian market. Following the successful acquisition of a 50% interest in The Coffee Club, we are keen to increase our investments in the Australian market. We see Oaks’ unique apartment portfolio as a valuable addition to our expanding resort and hotel portfolio across Asia, the Indian Ocean, the Middle East and Africa and look forward to adding significant value to the business in terms of growth and expansion.”
Minor could well face competition from some well known regional serviced apartment operators as well as other hotel companies with a strong Australian base.