WHITE PLAINS, N.Y., March 12 /PRNewswire/ -- Starwood Hotels and Resorts
Worldwide, Inc. (NYSE: HOT), a global owner and operator of full-service
hotels in the luxury and upscale segment of the lodging industry, is making a
tender offer through its subsidiary, Starwood Hotels (Thailand) Company
Limited, to acquire 100% of the outstanding shares of Royal Orchid Hotel
(Thailand) Public Company Limited ("ROH"), owner of the Royal Orchid Hotel in
Bangkok (the "Hotel").
The price offered by Starwood is Baht 29 per share. ROH shareholders who
render their shares in the tender offer after April 5, 2001 will be entitled
to receive the dividend for the year 2000, which has been declared at Baht
1.70 per share and will be paid before May 16, 2001. The effective offer
price is therefore Baht 30.70 per share. The offer period begins from March
12, 2001 and is expected to last until April 18, 2001.
Starwood believes that the tender offer price of Baht 29 per share (plus
the dividend of Baht 1.70 per share) represents an attractive opportunity for
ROH shareholders as it provides a substantial market premium over ROH's
stock's long-term moving average price of Baht 20.20 per share.
The shares have been thinly traded in the market and are expected to
become less liquid due to the new shareholding structure after the tender
offer. Currently, three of the top five major shareholders, Ital-Thai Holding
Company Limited, Michigan Investment Company Limited and Hong Kong Land (ROH)
Limited, have agreed to sell their collective holding of 44% in ROH to
Starwood at the offer price of Baht 29 per share. As a result, Starwood, Thai
Airways International PCL, MBK Properties and Development PCL are expected to
hold over 83% of the total shares outstanding post the tender offer.
Starwood has managed the hotel through its subsidiary, Sheraton Overseas
Management Corporation, since 1985. The investment in ROH represents a unique
opportunity for Starwood to elevate its presence in the growing Bangkok hotel
market.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and
leisure companies in the world with more than 725 properties in 80 countries
and 120,000 employees at its owned and managed properties. With
internationally renowned brands, Starwood is a fully integrated owner,
operator and franchiser of hotels and resorts including: St. Regis, The Luxury
Collection, Sheraton, Westin, Four Points by Sheraton, W brands, as well as
Starwood Vacation Ownership, Inc., one of the premier developers and operators
of high quality vacation interval ownership resorts. For more information,
please visit http://www.starwoodhotels.com.
** Please contact Starwood's new, toll-free media hotline at
(866) 4-STAR-PR (866-478-2777) for photography or additional information.**
SOURCE Starwood Hotels and Resorts Worldwide, Inc.
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Related links:
http://www.starwoodhotels.com
Company News On-Call:
http://www.prnewswire.com/comp/443150.html or fax,
800-758-5804, ext. 443150
CONTACT:
Katie Meyer, Vice President, Public Relations
of Starwood Hotels & Resorts Worldwide, Inc., 914-640-8247
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