Orient-Express Hotels, the Bermuda-based luxury hotel chain company where the Tata Group-backed Indian Hotels Company has put in an unsolicited bid to acquire it, said it will respond to the Indian company's offer soon.
The eight member board of Orient-Express Hotels, met on Thursday to consider the company's third quarter results but did not make any official announcement on the Indian Hotels Company's bid.
A senior company executive clarified at the very beginning over the international conference call organised by the company today that no questions will be entertained over the letter which Indian Hotels Company had sent.
"We are carefully evaluating the proposal in consultation with its financial and legal advisors and will respond in due course in accordance with the best interests of the Company and its shareholders," said the executive.
"The discussions are currently underway and we cannot take any questions based on the offer," added the executive even before a single question was asked by any of the several dozen participants who had logged in from across the world. Two weeks ago Mumbai-based Indian Hotels Company along with an Italian private equity and venture capital company, had put in an unsolicited bid to acquire all of the outstanding shares of the Orient-Express Hotels. The Bermuda-registered company today reported net earnings of $17.73 million or $0.17 per share for quarter ending 30 September, up from net loss $49.92 million or $0.49 per share in the corresponding period a year ago.
The Indian company had put in an offer bid of $12.63 per share to acquire equity shares of Orient-Express Hotels.
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The proposal was thus at a valuation of $1.86 billion (more than Rs 9,600 crore) which includes a debt of at $529.5 million (Rs 2,800 crore).
The company is owner/part-owners and managers of 45 luxury hotel, restaurant, tourist train and river cruise properties operating in 22 countries. Indian Hotels Company will declare its results of the same quarter next week.
Last week Indian Hotels Company vice-chairman R K Krishna Kumar hinted at a improved offer in a second letter which this time was addressed to J Robert Lovejoy, chairman of the board of directors of Orient-Express Hotels.
Philip Mengel, director and interim chief executive officer, said, "Despite continuing economic uncertainty in Europe, revenues held up well and same store RevPAR in local currency was unchanged from last year on a global basis. In Europe, revenues from owned hotels were up by $2.6 million on a local currency basis even with the tough macro-economic conditions in that market".
The company said it is pursuing plans to maximise opportunities from emerging markets and has retained the services of two leading sales representation companies for promoting its services in the Chinese market. These firms will represent Orient-Express from offices in Singapore, Hong Kong, Taipei, Beijing, Shanghai and Guangzhou.
Orient-Express this week appointed New Delhi-based The Luxury Trains as its General Sales Agent (GSA) in a move to tap the high-end Indian segment for its train and cruise products across Asia and Europe.