SUNSHINE COAST, AUSTRALIA Three weeks after a controlling stake in debt-stricken Oaks Hotels & Resorts was acquired by Minor International PCL, a new bidder has emerged seeking 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 a SmartCompany.com report.
“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.