Starwood Hotels launches tender offer for Royal Orchid Hotel
Starwood Hotels and Resorts Worldwide, Inc.), a global owner and operator of full-service hotels in the luxury and upscale segment of the lodging industry, is making a tender offer through its subsidiary, Starwood Hotels (Thailand) Company Limited, to acquire 100% of the outstanding shares of Royal Orchid Hotel (Thailand) Public Company Limited ("ROH"), owner of the Royal Orchid Hotel in Bangkok (the "Hotel").
The price offered by Starwood is Baht 29 per share. ROH shareholders who render their shares in the tender offer after April 5, 2001 will be entitled to receive the dividend for the year 2000, which has been declared at Baht 1.70 per share and will be paid before May 16, 2001. The effective offer price is therefore Baht 30.70 per share. The offer period begins from March 12, 2001 and is expected to last until April 18, 2001.
Starwood believes that the tender offer price of Baht 29 per share (plus the dividend of Baht 1.70 per share) represents an attractive opportunity for ROH shareholders as it provides a substantial market premium over ROH's stock's long-term moving average price of Baht 20.20 per share.
The shares have been thinly traded in the market and are expected to become less liquid due to the new shareholding structure after the tender offer. Currently, three of the top five major shareholders, Ital-Thai Holding Company Limited, Michigan Investment Company Limited and Hong Kong Land (ROH) Limited, have agreed to sell their collective holding of 44% in ROH to Starwood at the offer price of Baht 29 per share. As a result, Starwood, Thai Airways International PCL, MBK Properties and Development PCL are expected to hold over 83% of the total shares outstanding post the tender offer.
Starwood has managed the hotel through its subsidiary, Sheraton Overseas Management Corporation, since 1985. The investment in ROH represents a unique opportunity for Starwood to elevate its presence in the growing Bangkok hotel market.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 725 properties in 80 countries and 120,000 employees at its owned and managed properties. With internationally renowned brands, Starwood is a fully integrated owner, operator and franchiser of hotels and resorts including: St. Regis, The Luxury Collection, Sheraton, Westin, Four Points by Sheraton, W brands, as well as Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For more information, please visit http://www.starwoodhotels.com.
CONTACT: Katie Meyer, Vice President, Public Relations of Starwood Hotels & Resorts Worldwide, Inc., 914-640-8247/
SOURCE: Starwood Hotels & Resorts