mr funny
03-11-06, 12:22
Singapore Companies
Published November 3, 2006
Tuan Sing offers A$213.4m for rest of Grand Hotel
Its A$1.10 a share offer is 29% more than M'sian group Mulpha's A$0.85
By ANGELA TAN
RATHER than see its associate Grand Hotel Group (GHG) undergo a proposed asset sale in response to a takeover bid by a Malaysian group, Tuan Sing Holdings has made an offer to buy the remaining 74.96 per cent stake in CHG that it does not already own for A$213.4 million (S$257.3 million).
http://img155.imageshack.us/img155/4379/bt5055708031120061e31fbjk1.jpg (http://imageshack.us)
GHG's operations: Tuan Sing already owns 25.04 per cent of GHG, which operates Hyatt hotels in Australia
Tuan Sing, whose primary business activities are property, technology and industrial services, already owns 25.04 per cent of GHG, the operator of Hyatt hotels in Australia.
Its offer, through indirect wholly owned subsidiary Tuan Sing (Australia), translates to A$1.10 for each share in the five-star hotel investment trust and values GHG at about A$285 million.
The A$1.10 a share offer is 29 per cent more than an earlier bid of 85 Australian cents a share by Malaysian group Mulpha International Bhd, but still below GHG's market price of about A$1.26.
However, Tuan Sing - controlled by Indonesian tycoon Sjamsul Nursalim's family - said its bid offered greater certainty to shareholders compared with GHG's plan to sell its hotels after its rejection of Mulpha's A$220 million offer.
Tuan Sing highlighted concerns under GHG's break-up plan, including tax, timing and fee issues, that might cut the sale proceeds.
'Having regard to these issues, we believe that our offer provides an alternative which is superior and reflects fair and certain value for existing GHG security holders,' Tuan Sing said.
Tuan Sing said GHG's shares had traded below net book value for most of the past nine years and trading in the shares had been thin.
'TSA (Tuan Sing Australia) believes that an alternative to the stapled securities structure of GHG would be more suitable for operating a hotel business and that GHG should be privatised,' it said in a statement to the Singapore Exchange (SGX), adding that it believes it would be able to revamp GHG and unlock value for the benefit of all the parties involved.
Yesterday, GHG told shareholders not to respond to the offer until it has reviewed the bid. A condition of the Tuan Sing bid is that GHG shareholders do not vote to approve the sale of the company's assets. GHG was going to seek shareholder approval on Nov 28 for a plan to sell its four Hyatt hotels, two Chifley hotels and one Country Comfort hotel in Australia, aiming to fetch more than their current net tangible asset value of A$1.33 a share.
GHG said yesterday it has received a number of unsolicited approaches from parties interested in either acquiring CHG or its portfolio of hotels. But there is currently no certainty that a binding proposal will be received, it added.
'It remains the current intention to seek security-holder approval at the AGM to pursue an ordely realisation of assets,' chairman Bill Conn said.
Meanwhile, Mulpha has said it will let its offer lapse on Nov 7.
Tuan Sing plans to fund its acquisition with loan facilities entered into with Australia and New Zealand Banking Group Limited. ANZ Investment Bank is the financial adviser to Tuan Sing for the purchase.
Published November 3, 2006
Tuan Sing offers A$213.4m for rest of Grand Hotel
Its A$1.10 a share offer is 29% more than M'sian group Mulpha's A$0.85
By ANGELA TAN
RATHER than see its associate Grand Hotel Group (GHG) undergo a proposed asset sale in response to a takeover bid by a Malaysian group, Tuan Sing Holdings has made an offer to buy the remaining 74.96 per cent stake in CHG that it does not already own for A$213.4 million (S$257.3 million).
http://img155.imageshack.us/img155/4379/bt5055708031120061e31fbjk1.jpg (http://imageshack.us)
GHG's operations: Tuan Sing already owns 25.04 per cent of GHG, which operates Hyatt hotels in Australia
Tuan Sing, whose primary business activities are property, technology and industrial services, already owns 25.04 per cent of GHG, the operator of Hyatt hotels in Australia.
Its offer, through indirect wholly owned subsidiary Tuan Sing (Australia), translates to A$1.10 for each share in the five-star hotel investment trust and values GHG at about A$285 million.
The A$1.10 a share offer is 29 per cent more than an earlier bid of 85 Australian cents a share by Malaysian group Mulpha International Bhd, but still below GHG's market price of about A$1.26.
However, Tuan Sing - controlled by Indonesian tycoon Sjamsul Nursalim's family - said its bid offered greater certainty to shareholders compared with GHG's plan to sell its hotels after its rejection of Mulpha's A$220 million offer.
Tuan Sing highlighted concerns under GHG's break-up plan, including tax, timing and fee issues, that might cut the sale proceeds.
'Having regard to these issues, we believe that our offer provides an alternative which is superior and reflects fair and certain value for existing GHG security holders,' Tuan Sing said.
Tuan Sing said GHG's shares had traded below net book value for most of the past nine years and trading in the shares had been thin.
'TSA (Tuan Sing Australia) believes that an alternative to the stapled securities structure of GHG would be more suitable for operating a hotel business and that GHG should be privatised,' it said in a statement to the Singapore Exchange (SGX), adding that it believes it would be able to revamp GHG and unlock value for the benefit of all the parties involved.
Yesterday, GHG told shareholders not to respond to the offer until it has reviewed the bid. A condition of the Tuan Sing bid is that GHG shareholders do not vote to approve the sale of the company's assets. GHG was going to seek shareholder approval on Nov 28 for a plan to sell its four Hyatt hotels, two Chifley hotels and one Country Comfort hotel in Australia, aiming to fetch more than their current net tangible asset value of A$1.33 a share.
GHG said yesterday it has received a number of unsolicited approaches from parties interested in either acquiring CHG or its portfolio of hotels. But there is currently no certainty that a binding proposal will be received, it added.
'It remains the current intention to seek security-holder approval at the AGM to pursue an ordely realisation of assets,' chairman Bill Conn said.
Meanwhile, Mulpha has said it will let its offer lapse on Nov 7.
Tuan Sing plans to fund its acquisition with loan facilities entered into with Australia and New Zealand Banking Group Limited. ANZ Investment Bank is the financial adviser to Tuan Sing for the purchase.