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Monday 8 November 10:37 PM
Thai Royal Garden Ups Stake, To Make Tender For RajadamriBANGKOK (Dow Jones)--Thailand's Royal Garden Resorts PCL (RGR.TH) Monday said it raised its equity interest in listed Rajadamri Hotel PCL (RHC.TH) from 49.3% to 57.7% through the purchase of 3,760,100 shares from Kasikornbank PCL (KBANK.TH) at THB47 a share. The total transaction cost of THB176.7 million was funded through internal working capital, the company said a press release. In a filing with the Stock Exchange of Thailand, Royal Garden Resorts said the 8.4% stake in Rajadamri was purchased by its unit Royal Garden Hotel Management Ltd., which will make a tender offer for the outstanding shares at the same price of THB47 a share. At a board meeting Nov. 5, Royal Garden Resort decided not to sell the 49.3% stake it holds directly in Rajadamri Hotel, it said. Therefore, Royal Garden's management company will tender for the remaining 42.3% stake of Rajadamri, worth THB895.6 million at the offer price. Royal Garden Resorts said in the press release it will begin consolidating the results of Rajadamri Hotel in the current quarter. Rajadamri owns 100% of the 356-room Four Seasons Bangkok hotel and 25% of the 64-room Four Seasons Chiang Mai. In the first six months of 2004, Rajadamri recorded total revenues of THB421.6 million and a net profit of THB57.8 million. Through the transaction with Kasikornbank, Royal Garden will increase its beneficial interest in Four Seasons Chiang Mai from 58% to 60%. In September, Royal Garden announced a tender offer to increase its stake in the Minor Food Group PCL (MFG.TH) to 100% and a plan to later delist the company. This tender offer is expected to be completed by December 2004. In early October, the company said it had increased to 100% its equity interest in the 265-room JW Marriott Phuket Resort & Spa, and in late October, in the Mandara Spa operations in Thailand and China. Earlier this week, the Company announced investments in two additional Anantara Resort & Spas in Khao Lak and Koh Samui. All of these transactions are in existing operations. Contributions to earnings will be booked in the current quarter, and full contributions will begin in 2005. Royal Garden has a portfolio of eleven hotels and over 2,200 rooms under the Marriott, Four Seasons, Anantara and Royal Garden brands in Thailand and Vietnam. A joint venture with Marriott International has also developed the 144-room Marriott Vacation Club Time Share in Phuket. The Minor Food Group is Thailand's largest food service operator with over 456 outlets of The Pizza Company, Swensen's, Sizzler, Dairy Queen and Burger King. -By Tom Fox, Dow Jones Newswires; 66 2266 0744; tom.fox@dowjones.com -Edited by Sarah C. de Mesa
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