Banyan Tree offering $96m for rest of Laguna Resorts & Hotels

Resorts group Banyan Tree Holdings will make an offer for the outstanding shares in its Laguna Resorts & Hotels unit in Thailand, although it has no plans to delist the firm.

Banyan Tree said yesterday that it will lodge a voluntary tender offer for 57.08 million shares at 40 baht apiece.

The offer price represents a 34 per cent premium to the last traded price of Laguna Resorts & Hotels - at 29.75 baht immediately preceding the date of the tender offer.

The total purchase price will work out to about 2.28 billion baht (S$95.7 million), Banyan Tree said in a Singapore Exchange filing.

Mainboard-listed Banyan Tree directly holds about 34.25 per cent of Laguna Resorts & Hotels and a total aggregate interest of around 65.75 per cent.

It said the offer price was determined after accounting for Laguna's historical trading price on the Thai stock exchange, its historical earnings and financial position, and the anticipated potential of the country's hospitality industry.

Laguna Resorts & Hotels mainly operates the integrated resort of Laguna Phuket, which comprises hotels including the Angsana Laguna Phuket and the Banyan Tree Phuket, and the Banyan Tree Bangkok.

  • 34%

  • The premium of the offer price over the last traded price of Laguna Resorts & Hotels - at 29.75 baht immediately preceding the date of the tender offer.

Its subsidiaries also operate a golf club, sell merchandise, rent office and resort space, and offer holiday club memberships.

The company, which was founded in 1983, acquired a large parcel of land on the site of an abandoned tin mine at Bangtao Bay on Phuket, which was developed into the Laguna Phuket integrated resort.

Laguna Resorts & Hotels had a book value of 4.34 billion baht as of Dec 31, 2017.

The firm said yesterday that the board will consider Banyan Tree's offer.

A version of this article appeared in the print edition of The Straits Times on February 27, 2018, with the headline 'Banyan Tree offering $96m for rest of Laguna Resorts & Hotels'. Print Edition | Subscribe