HOTEL Holdings, which is the Khoo family's holding company of the now-delisted Goodwood Park Hotel, on Friday launched a voluntary unconditional cash offer for all the remaining shares in the company that it does not own at S$43 per share.
The offer values the company at S$1.85 billion.
The offeror currently owns 24.24 per cent of the company, and has received irrevocable undertakings from parties representing a further 75.43 per cent. This means they collectively own 99.67 per cent of the company.
The offeror said it was looking to sweep up the remaining 0.33 per cent stake because since its exit offer and delisting of the company in December 2004, a small proportion of shares continued to be publicly held. "Since then, it has become difficult for shareholders to realise their investment in the company's shares given the lack of a public market."
Friday's offer price exceeds the company's revalued net asset value of S$42.81 per share, and is much higher than the net exit offer price of S$11.88 per share in 2004 after deducting the special dividend.
In a statement, the offeror said it is doing this to consolidate the holdings of the company under a single holding company.
"The offeror has no plans to divest any of the hotels, convert them to alternative uses or expand their capacity materially in the foreseeable future. However, the offeror retains the flexibility at any time to consider any options or opportunities which may present themselves and which it may regard to be in the best interest of the company. No such options or opportunities are being considered at this time."
The deal was advised by DBS Bank.