mulpha offer grossly undervalues.. Mulpha will have to seriously rethink its offer price, because at 95c this stock is clearly going over $1, and they really should not get away with anything less than NTA which is $1.33
here is article;
"Takeover target Grand Hotel Group announced its annual net profit had more than doubled, and said it was well positioned to benefit from forecast favourable industry dynamics.
The company announced its profit attributable to security holders totalled $50.8 million in 2005/06, up 121.3 per cent from the previous year.
The figures were reported under the new Australian equivalents to International Financial Reporting Standards (AIFRS), which meant hotel properties (excluding adjoining car parks, retail and office) were no longer classified as investment properties.
GHG is currently the subject of a $220 million takeover bid from Malaysian-owned hotel group Mulpha International, which GHG managing director Simon Barlow described as "grossly undervalued".
Mr Barlow said the profit results produced by GHG were indicative of a company looking to grow in its own right.
"We're very happy with the results, I think it's the culmination of a couple of years of very hard work on many levels for GHG," Mr Barlow said.
"We've reduced gearing, sold off underperforming assets and despite the robust trading conditions for hotels, the financial health of the company is the best it's ever been."
Mr Barlow said the Mulpha offer of 85 cents per share did not reflect the true value of GHG, which he backed to increase in the coming years.
GHG currently owns four Hyatt hotels, two Chifley hotels and one Country Comfort hotel.
The hotel group said its hotels were well positioned and located to benefit from the favourable industry dynamics forecast for the hotel sector in the next two to three years.
"It is expected that the portfolio will deliver above average earnings growth and use this as the platform for maximising value for security holders," GHG said.
Company revenue was listed at $179.6 million, up $25.8 million from the previous year
GHG
grand hotel group
