Sharechat Logo

Shares surge as BIL grasps Thistle

Friday 4th July 2003

Text too small?
Here's a company you probably never thought to see here; good old BIL International.

Whoever was on the sell side of the transaction that saw BIL's share price hit this year's low of 41c three months ago will be well-pleased with their investment.

Since then the share price has doubled.

The rise is on the back of BIL's successful takeover of the minority interest in Britain's Thistle Hotels which, in true BIL form, has been coloured by controversy.

The year started (taking an unrelated tangent) with an article in Singapore's Straits Times detailing how former chief financial officer Andrew Shepherd was suing the company, which is suing him back. The lawsuit relates to allegations he cooked BIL's books for the December 2001 half-year.

The Thistle takeover cat was already well and truly out of the bag on February 24 when BIL was forced to say publicly it was considering a bid after Thistle shares went into a rapid climb. It confirmed a £1.15 a share cash offer on March 5 and increased it to £1.30 on April 30. It's unclear why investors think the Thistle acquisition is so positive; the hotel chain has been a millstone round BIL's neck ever since it first misjudged its entry.

Last year BIL made a $US10.4 million profit but lost that and more ($US18 million) in the first half.

With the exception of the unsellable Molokai Ranch and a Fraser & Neave stake which BIL has been selling down steadily, Thistle is now the only significant asset on its books.

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar eases as market eyes pending GDP data
Evolve shareholders demand answers
Strong tourism, low rates keep lid on NZ current account deficit
Refining NZ margins jump to 18-month high
Goodman opts for underwritten $150m placement to raise capital
Kathmandu shares rise 9.3% on strong FY result, solid US performance
FMA seeks greater powers from the government
Goodman opts for underwritten $150m placement to raise capital
NZ dollar opens higher as dairy prices lift, oil eases
Napster's Sean Parker yet to seek OIO approval for Weta Digital stake

IRG See IRG research reports