Indian Hotels to make $1.86 billion bid for Orient Express
18 Oct 2012
Indian Hotels Company, the Tata group firm that owns the iconic Taj Hotels and Resorts brand, today said it will make another offer to acquire US-based Orient Express Hotels, which owns a chain of luxury hotels in the US and Europe.
Indian Hotels, which had earlier acquired a 6.9 per cent stake in Orient Express during 2007 and 2009, proposes to make an offer of approximately $1.86 billion for the remaining 93.1 per cent equity stake.
Indian Hotels said it along with Charme II Fund, an Italian fund managed by Montezemolo and Partners SpA, has sent a letter to Orient Express Hotels Ltd proposing to purchase all of its outstanding Class A common stock for $12.63 per share in cash.
The proposal values Orient Express at approximately $1.86 billion, including its net debt, Indian Hotels said in a statement.
The all-cash offer represents a 40 per cent premium to Orient-Express' closing stock price on 17 October, the last trading day prior to this announcement, a 45.2 per cent premium to its 10-day average closing prices and a 15.87 per cent premium to its 52-week closing high of $10.9 per share.
Indian Hotels said its board of directors has 'in principle', authorised the company to make an offer to the board of Orient Express Hotels Ltd seeking their consent for acquiring the balance outstanding 93.1 per cent Class A common shares of Orient Express Hotels Ltd, subject to necessary regulatory approvals,
