Opinion of the Company on the Tender Offer (Form 250-2)
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- Translation - Opinion of the Company on the Tender Offer (Form 250-2) Of Royal Orchid Hotel (Thailand) Public Company Limited Tender Offeror Grande Asset Hotels and Property Public Company Limited 24 May 2018 Opinion of the Company on the Tender Offer (Form 250-2) May 24, 2018 Dear Shareholders Royal Orchid Hotel (Thailand) Public Company Limited As Royal Orchid Hotel (Thailand) Public Company Limited (“ROH” or “the Business” or “the Company”) received a copy of the Tender Offer to purchase the securities of the Company (“Form 247-4” or the “Tender Offer”) from Grande Asset Hotels and Property Public Company Limited (the “Tender Offeror” or “GRAND”) as a Tender Offeror on May 3, 2018 the details are as follows: Number of securities to be Percentage of securities to be purchased1/ Tender Type of Securities purchased Offer Price Total Tender (Share/Unit) Total voting Total paid-up shares of Total voting rights per unit Offer value rights the Company of the Company (Baht)2/ (Baht) Ordinary shares 3/ 29,999,765 29,999,765 32.00 32.00 41.00 1,229,990,365 Preferred shares - - - - - Warrants - - - - - Convertible debentures - - - - - Other securities (if any) - - - - - Total 29,999,765 Total 32.00 Total 1,229,990,365 Remark 1/ The Business has a total of 93,750,000 shares with par value of Baht 10.00 per share 2/ The Offer Price of ROH’s share is 41.00 Baht (Forty one Baht). In addition, shareholders who accept the Tender Offer, are subject to payment of a brokerage fee of 0.25 percent of the Offer Price plus value added tax (“VAT”) of 7 percent of the brokerage fee. Therefore, the net price to be received by the Offeree will be 40.89 Baht (Forty Baht Eighty Nine Satang) per share. 3/ As at the date of submission of the Tender Offer, the Business has a total of 63,750,235 shares representing 68.00 % of total issued and paid-up shares of the Business. Consequence the Tender Offeror shall make a Tender Offer for all remaining 29,999,765 ordinary shares of the Business, representing 32.00% of total issued and paid-up shares of the Business in accordance to the Notification of the Capital Market Supervisory Board No. TorChor. 12/2554. Re:Rules, Conditions and Procedures for the Acquisition of Securities for Business Takeovers. The Tender Offer is for 29,999,765 ordinary shares of the Business (Twenty Nine Million Nine Hundred Ninety Nine Thousand Seven Hundred Sixty Five ordinary shares of the Business), representing 32.00% of total issued and paid-up shares of the Business and representing 32.00% of total voting rights of the Company. Grande Asset Hotels and Property Public Company Limited had entered the investment of ordinary shares of Page 2 from 30 Royal Orchid Hotel (Thailand) Public Company Limited from its existing shareholders, Starwood Hotels (Thailand) Company Limited (“STARWOOD”) in the number of 41,250,235 shares with the par value of Baht 10.00 per share, equivalent to 44% of the total number of paid-up shares of ROH, at the price of Baht 35.00 per share, totaling of 1,443,758,225.00 Baht and Thai Airways International Public Company Limited (“THAI”) in the number of 22,500,000 shares with the par value of Baht 10.00 per share, equivalent to 24% of the total number of paid-up shares of ROH, at the price of Baht 41.00 per share, totaling of 922,500,000.00 Baht which resulted in the Company holding 63,750,235 shares of ROH in total or equivalent to 68% of the total number of paid-up ROH shares. The Tender Offeror is obliged to make a mandatory Tender Offer for all of the remaining securities of the Business because of holding the shares of ROH more than 50% of the total voting rights, the Tender Offeror is obliged to make a mandatory Tender Offer for all of the remaining securities of the Business in accordance to the Notification of the Capital Market Supervisory Board No. TorChor 12/2554 Re:Rules, Conditions and Procedures for the Acquisition of Securities for Business Takeovers (Board No. TorChor 12/2554). The Tender Offer is for 29,999,765 ordinary shares of the Business, representing 32.00% of total issued and paid-up shares of the Business. The Tender Offer Period will last a total of 45 business days from 8 May 2018 to 10 July 2018, during the office hours of the Tender Offer Agents from 9:00 a.m. to 4:00 p.m. which is the final period that will not be extended. SCB Securities Company Limited as the Tender Offer Agent, will make payment to the Offeree, who does not cancel their acceptance of Tender Offer within the permitted period, on the 2nd business day following the last day of the Tender Offer Period (“Settlement Date”), which is on 12 July 2018 or on the 2nd business day following the last day of the extended Tender Offer Period in case of an extension of the Tender Offer Period. The last day that the Offeree is able to revoke its acceptance of the Tender Offer is the 40th business days of the Offer Period which is at 3 July 2018.The Offeree is able to revoke its acceptance of the Tender Offer at the office of the Tender Offer Agent on any business day between 8 May 2018 and 3 July 2018 inclusive during the hours of 9:00 a.m. to 4:00 p.m., totaling 40 business days. Such Offer Price is the final offer which shall not be changed, and such Tender Offer Period is the final period which shall not be extended, unless the following conditions arise: 1) The Tender Offeror may reduce the Offer Price or extend the Offer Period in the case of any event or action that occurs during the Offer Period which causes severe damage to the status or assets of the Business 2) The Tender Offeror may change the offer or extend the Offer Period to compete with another Tender Offeror who has submitted a Tender Offer for shares of the Business during the Offer Period. Page 3 from 30 The Tender Offeror may cancel the Tender Offer upon the occurrence of one or more of the following events: 1) any event or action occurring after the submission of the Tender Offer to the Office of the Securities and Exchange Commission (the “SEC”) but within the Offer Period which causes or may cause severe damage to the status or the assets of the Business, where such event or action has not result solely from the actions of the Tender Offeror or actions for which the Tender Offeror are responsible; or 2) any action conducted by the Business after the submission of the Tender Offer to the SEC but within the Offer Period which causes or may cause a significant decrease in the value of the Business’s shares; or 3) any action conducted by the Business as defined in the Notification of the Capital markets Supervisory Board No. TorChor.12/2554 Re:Actions exempt of actions that may affect the result of Tender Offer. 1. The status of the Company in respect of past 1.1 Background and Important Development Royal Orchid Hotel (Thailand) Public Company Limited, formerly known as Italthai International Hotel Company Limited, located on No. 2 Captain Bush Lane, Charoenkrung Road, Bangrak Sub-district, Bangrak District, Bangkok, established with a registered capital of 80,000,000 Baht in June 1978 with the objective of running hotel business. Currently, ROH has registered and paid-up capital of 937,500,000 Baht. Royal Orchid Sheraton Hotel & Towers is located on the eastern bank of the Chao Phraya, built in a “Y” shape to give all guestrooms magnificent views of the river. The hotel was officially inaugurated by Her Majesty Queen Sirikit of Thailand on 22 July 1983 as the “Royal Orchid Hotel” In 1985, ROH signed the hotel management contract with Sheraton Overseas Management Corporation and changed the hotel name to Royal Orchid Sheraton Hotel & Towers. ROH listed its securities on the stock exchange of Thailand (“SET”) in July 1989. Acclaimed as the “Best City Resort” in Bangkok, the hotel has a total of 726 spacious guestrooms and suites in the main hotel and the Club floors together with 2 lobby parts for individual travelers and group travelers. Moreover, the hotel has meeting rooms and beautiful ballrooms with modern technology provided especially the Grand ballroom which is acclaimed the most modern ballroom with light, color and sound in Thailand. The Royal Orchid Sheraton Hotel & Towers’ source of business is derived from international tourists, incentives, conventions, meetings, leisure groups and business transients. The hotel introduced The Club concept to its clients in 1986 as executive floors that are a “hotel within a hotel,” offering superior services and facilities plus exclusive lounge acting as a business center and also serving daily breakfast, evening cocktails, and all-day tea & coffee. Page 4 from 30 Recreational facilities include 2 outdoor swimming pools, Royal Orchid Mandara Spa, a very modern and well-equipped fitness center, jogging track and tennis court. In addition, a bridge-link connects to River City Shopping Complex, Thailand’s premier Antiques & Arts Centre, and a boat landing gives direct access to river activities and cruises. While the hotel’s shuttle boat will provide guests the convenience to catch the overhead sky train to many of Bangkok’s attractions including MBK Center, Siam Paragon, or Suan Chatuchak (weekend market).