May 15, 2014

    Consortium ups offer price for Hotel Properties

    A CONSORTIUM that includes Singapore tycoon Ong Beng Seng and Wheelock Properties has increased its offer price for a stake in Hotel Properties to $4 per share, valuing the company at around $2.07 billion.

    The consortium, 68 Holdings, agreed last month to acquire nearly 214 million shares in Hotel Properties, representing a 41.9 per cent stake in the company, at $3.50 each.

    Hotel Properties said in a statement yesterday that the consortium had raised its price after buying 17.1 million of its shares at $4 each.

    Under Singapore's Takeover Code rules, it now has to raise its offer for the rest of the shares to match this price.

    In addition, the offeror said it would not deduct HPL's full-year dividends for last year from the offer price, The Straits Times reported.

    In other words, shareholders who accept the offer will receive the dividend of eight cents per share, on top of the $4 offer price.

    The offer will remain open until June 2.

    Hotel Properties shares were up 7.26 per cent to $3.84 yesterday morning, before trading in them was halted ahead of the announcement.