Minor International has announced completed the acquisition of a 34.4% stake in Australia-based Oaks Hotels & Resorts Limited. The purchase increases Minor’s stake in Oaks to a 54.3% controlling stake, and effectively marks the Thailand-based company’s takeover of Oaks.
Under the terms of the investment, Minor now offers Oaks shareholders AU$0.52 (US$0.57) for every Oaks share held, reflecting the company’s valuation of Oaks’ equity at approximately AU$90 million.
In March 2011, Minor announced its intention to acquire a majority stake in Oaks, which presently operates 38 serviced apartment hotels across Australia, New Zealand and the Middle East. At that time, the company, which operates the Anantara brand, acquired a 19.96% stake in the company with an investment of AU$12 million.
The hospitality division of Minor International, Minor Hotel Group currently includes a portfolio of 35 hotels operating in eight countries, but the investment in Oaks marks Minor’s first foray into the Pacific and immediately doubles the company’s portfolio to more than 70 properties with approximately 8,800 rooms across Asia, the Indian Ocean, the Middle East and Australasia.
Oaks Hotels & Resorts was created in the early 1990s and specialises in serviced apartment management.
Dillip Rajakarier, Chief Operating Officer of Minor Hotel Group, said; “With a majority stake in Oaks Hotels & Resorts we intend to grow and develop the brand by drawing on all of Minor Hotel Group’s strengths to great effect. With a proven track record in the market and a solid pipeline of growth within Minor Hotel Group, we have the leadership team and the skill set in place to ensure the continued development and financial success of the Oaks brand.”