Grand Hotel Group – Panel Receives Application [02/10/2003] The Takeovers Panel

Thursday, 2 October 2003

GRAND HOTEL GROUP: PANEL RECEIVES APPLICATION

The Panel has received an application from Grand Hotel Group dated 30 September 2003 alleging unacceptable circumstances in relation to a meeting of Grand Hotel Trust (GHT) members which has been called by Parker Global Strategies LLC for 22 October 2003.

Parker Global Trust, which has a relevant interest in approximately 12% of GHG, seeks to remove the current responsible entity of GHT and appoint Hotel Capital Partners Ltd in its place.

Hotel Capital Partners is 50% owned by the James Fielding Group. It is not a related entity of Parker Global Strategies.
GHG alleges that the vote will take place in an uninformed market. It alleges, amongst other things, that:

  • further information relating to the relationship between Parker Global Trust and Hotel Capital Partners Ltd, and Parker Global Trust and Touraust Corporation Pty Ltd (the entity which operates most GHT hotels) should be disclosed to members of GHT; and
  • the Notice of Meeting prepared by Parker Global Strategies is materially deficient and prevents GHT members being able to evaluate what amounts to a change in control of GHT. The principal alleged deficiencies are the failure to discuss the relative merits of having an internally managed trust, and full information relating to the fees that would be payable to Hotel Capital Partners.

GHG has applied for interim and final orders, amongst other things, that GHT members be provided with additional information to enable them to consider the merits of replacing the responsible entity of GHT.

The Panel has not yet sought the views of other persons potentially involved in the application and has therefore formed no views on the application.

The President of the Panel has yet to appoint a sitting Panel to consider the application.

George Durbridge,
Director, Takeovers Panel
Level 47 Nauru House,
80 Collins Street, Melbourne VIC 3000
Ph: +61 3 9655 3553 Fax: +61 3 9655 3511
george.durbridge@takeovers.gov.au