Hotels group Thistle has urged shareholders to accept a revised £627m takeover bid from BIL International after BIL upped its stake in the company to more than 50%.
Singapore-based BIL raised its offer for Thistle by 15p to 130p late on Wednesday and subsequently revealed it had received acceptances representing a further 6.8% of the hotels group.
BIL also said the new offer was unconditional and would not be revised or increased.
The board of Thistle recommended that shareholders back the offer, but described it as “inadequate” and said that the bid “still fails to reflect Thistle’s underlying value and prospects.”
The hotels group conceded defeat after BIL said it would delist the company it now effectively controls.
Adviser Merrill Lynch warned that shareholders who did not accept the offer would find themselves minority shareholders in a delisted company.
Analysts said if BIL acquired more than 50%, investors would face a further loss of control as BIL might delist the company.
Peter Joseph, at KBC Peel Hunt, said he expected investors to accept the offer.
“A minority shareholder in a delisted company does not have many options,” he said.
Another analyst was not so sure the deal was done, saying: “If BIL only has 52%, then clearly one of the major shareholders has agreed but the others haven’t.”
The bid, which values Thistle at £627m, was still below the 170p a share at which BIL floated Thistle in 1996.
References: EGi News 02/05/03
