Oaks Hotels & Resorts gets takeover bid from Thai white knight

Shareholders in Oaks Hotels & Resorts might have found a white knight after a horror start to 2011 for the one-time Queensland highflyer.

Oaks dumped its chief executive and founder, Brett Pointon just over a week ago, despite having earlier pledged its support for the former BRW Rich List member after receivers were appointed to two of his private companies in January. The companies held a combined stake of 34% in the listed group.

Yesterday the apartment-hotel company revealed it has received a 35-cent-per share cash takeover from the Thai-listed Minor International, which already owns 20% of Oaks.

Minor International is no stranger to Australia, having acquired 50% of the Coffee Club chain in 2007 in a $23 million deal.

Oaks shares soared on news of the offer, closing yesterday at 33.5 cents, just below the offer price, and 10 cents higher than its price after the sacking of Pointon.

Oaks has yet to declare its hand on the $61 million offer, which is a 35% premium to its last traded price, saying it is evaluating the bid and urging shareholders to take no action.

It has likewise not yet named a replacement for Pointon, who founded the business two decades ago and whose personal wealth was valued in 2006 at $135 million.

Oaks shares peaked at $2.40 in late 2006, but have weighed down by the global financial crisis, delays with some hotel openings, weaker-than-expected tourist numbers and financing difficulties.

The suitor says the offer provides certainty to Oaks’ shareholders, drawing attention to the deterioration in the target’s share price, its lack of chief financial officer and the absence of dividends for two years.

Oaks chairman Doug Wong could not be contacted this morning. In late January, he told SmartCompany it was the board’s view that Pointon should remain chief executive and the appointment of receivers to Centrepoint Holdings Pty Ltd and The Oaks Apartment Management Pty Ltd was Pointon’s private business.