Banyan Tree to acquire remaining stake in Laguna Resorts & Hotels for THB 40 a share

By PC Lee / The Edge Singapore | February 26, 2018 10:33 AM SGT
SINGAPORE (Feb 26): Banyan Tree Holdings is acquiring the remaining 34.25% stake it does not own in subsidiary, Laguna Resorts & Hotels (LRH).
Banyan Tree says the acquisition will enable to group to increase its economic interest in LRH. The offer also provides an opportunity to realise their investment in LRH.
The acquisition will be made via a voluntary tender offer for LRH shares by Banyan Tree and its subsidiary, Banyan Tree Resorts & Spas (Thailand) Company Limited.
A room at Banyan Tree Phuket, swimming pool in foreground
A guest room at Banyan Tree Phuket, one of the resorts within the Laguna Phuket integrated resort (Credit: Banyan Tree Holdings)
The tender offer price is THB 40 ($1.68) in cash for each LRH share. This values LRH at THB 2,283.38 million ($95.5 million) based on the total 57.1 million shares in issue.
The closing price of the LRH shares on Stock Exchange of Thailand on the market day immediately preceding the announcement was THB 29.75 per LRH share.
Banyan Tree has no plans to delist shares of LRH from the SET.
For the financial year ended Dec 2017, LRH has a book value and net tangible asset value of $181.4 million and $171.8 million respectively.
LRH was founded in 1983. LRH and its subsidiaries are principally engaged in hotel operations, property development operations and office rental.
Its major business investment largely revolves around the operation and management of the integrated resort of Laguna Phuket as well as its investments in the Banyan Tree Bangkok.
In addition, its subsidiaries also engage in operating a golf club, sales of merchandise, office and resort rental and sales of holiday club memberships.
This story, written by PC Lee for The Edge Singapore, first appeared on Feb 26.