Oaks Hotels & Resorts controlling shareholder eyes legal action against board, wants “very senior role” for deposed founder Brett Pointon

The saga at apartment-hotel company Oaks Hotels and Resorts continues, with new majority shareholder Minor threatening legal action against the Oaks board and promising a “very senior role” for the company’s founder, the former BRW Rich Lister Brett Pointon.

Dillip Rajakarier, chief operating officer of the Bangkok-based Minor, told SmartCompany that Oaks is trying to scupper a deal that Minor has struck to buy a 34% stake in the business from PricewaterhouseCoopers.

This stake previously belonged to Pointon, but was transferred to PwC’s control after the firm was appointed as receivers to Pointon’s private business empire.

The acquisition of that stake and shares owned by businesses associated with Pointon takes Minor’s holding in Oaks to 54%.

But Oaks yesterday told the market it “understands” that one of the bids for the shares being sold by PwC is a “conditional offer to acquire the Oaks parcel for a consideration of 60 cents per share.”

Oaks added that if PwC accepted the relevant offer, the bidder would be required to make an offer to acquire all the outstanding shares in Oaks for 60 cents per share – well above Minor’s offer price.

“The receivers and managers have not informed Oaks of their intentions at this point,” Oaks added.

Shortly afterwards though, Minor told the market it was the successful tenderer for the relevant 34% stake. It added that it had lifted its offer price to 52 cents per share, from 35 cents, and the offer was now unconditional. The revised offer values Oaks at more than $90 million.

Rajakarier told SmartCompany this morning that the deal with PwC to buy Pointon’s stake is done and reiterated that a board spill is on the way.

“The board is trying to scupper the deal, which they shouldn’t do,” he says.

According to Rajakarier, Oaks still faces a very difficult financial situation, and Minor only proceeded with a takeover offer after the board rebuffed requests for a minority stake.

“From a financial perspective, it’s quite risky,” he says.

“There’s quite a bit of mud in that company which needs to be cleared, and it’s mainly the board.”

An EGM is planned for May 27, with a board spill planned.

Rajakarier says if the board had knowledge of a 60-cent-per-share offer, it should have gone into a trading halt earlier this week.

As for plans for Pointon, who was removed from the company earlier this year, Rajakarier says the founder deserves a senior role in the revamped company.

Oaks dumped the chief executive and founder in March, despite previously pledging its support for the former BRW Rich List member after receivers were appointed to two of his private companies in January.

“Whatever he’s done, he’s the founder of the company,” he says.

“He’s got a huge amount of knowledge base in terms of this company and he knows the company really well.”

“We’re in the process of coming up with a post-acquisition plan where we would nominate our own directors.”

“Brett Pointon will definitely have a very senior role within our company.”