Goodwood Park Hotel was buying out its remaining minority shareholders. The Khoo family used Hotel Holdings, a private vehicle, to mount a voluntary unconditional cash offer in Oct 2016 for all the remaining shares it does not own at $43 per share.
The offer values the company at $1.85 billion. Accordingly there were 183 minority shareholders. These investors would have chosen to hold their stock despite the firm delisting after a buyout offer in 2004.
Hotel Holdings owned 24.24 per cent of Goodwood Park Hotel, with irrevocable undertakings from parties holding a further 75.43 per cent. That brings the total held to about 42.8 million shares or 99.67 per cent of the company.
This means that the 183 minority shareholders collectively own a mere 0.33 per cent stake in Goodwood Park Hotel.
Hotel Holdings said the move is aimed at consolidating the holdings of Goodwood Park Hotel – comprising the Goodwood Park Hotel, York Hotel and Royal Garden Hotel – under a single holding company. The three hotels have a total gross market valuation of $1.03 billion, according to an independent valuation by CBRE.