Thistle owner blooms on bid buzz

SHARES in BIL International, the Singapore investment group that recently took over Thistle Hotels, roared higher on speculation that it may soon be the subject of a takeover battle between two Asian tycoons.

The stock jumped 18% to 82 cents as investors savoured the prospect of a duel for the group, whose £627m offer secured full control of Thistle and its 24 London hotels earlier this month at a big discount to the properties' net asset value.

Thistle's six luxury landmark hotels, including the Royal Horseguards in Whitehall, could fetch up to £670m on any resale, according to sources close to the hotel group.

Last week, it emerged that renowned Indonesian-born asset trader Oei Hong Leong had amassed 8.1% of BIL after it took over Thistle. Oei is a major figure in the Singapore market with a vast retail investor following.

In response, BIL's controlling shareholder, Malaysian Quek Leng Chan, boosted his stake to 26% from 24% through his Camerlin investment group.

Analysts say BIL's purchase of Thistle has raised its net asset value per share, stoking Oei's predatory interest and Quek's prompt response. 'Oei is well known as a savvy asset trader with an eye for selecting undervalued companies,' broker Kim Eng Ong Asia told clients. Its sum-of-parts valuation for BIL is S$1.11 per share.

Apart from Thistle, BIL owns a 5% stake in Asian beverage maker Fraser & Neave, a similar-sized holding in Air New Zealand and property assets in Fiji.