Lehman Brothers yesterday took over Grande Asset Sukhumvit, which operates the Westin Grande Sukhumvit Hotel, after spending Bt3 billion to acquire a 50.1-per-cent stake in the company.

Giant Mauritius Holdings, owned by the US-based investment banking giant, and Hotel & Property Development Co Ltd, a Thai company, acquired 376.85 million shares - equal to 30.1 per cent of Grande Asset's paid-up capital - at Bt4.85 per share, Grande Asset reported to the SET. The purchase was made in 17 big-lot transactions worth Bt1.83 billion.

In addition, Giant Mauritius Holdings spent Bt1.2 billion on 250 million new Grande Asset shares that were issued, representing 20 per cent of its outstanding shares.

After the announcement, the SET ordered a suspension of trading on Grande Asset stock. Grande Asset operates the five-star Sheraton Grand Sukhumvit Hotel and other hotels.

Pongphan Sampawakoop, chief executive and chairman of Grande Asset Development Plc, said yesterday that some of his company's existing major shareholders had earlier agreed to sell their shares to the new shareholders.

A source closed to the deal said the Narula family, which is Grande's largest shareholder, had sold their stake as well.

Shareholders who sold their shares include Pongphan Sampawakoop (3.43 per cent), Puangchan Sampawakoop (3.58 per cent), Anunnthorn Phasittisakon (0.25 per cent), Suradej Narula (2.02 per cent), Varin Narula (0.5 per cent), Montira Narula (0.8 per cent), Amornratana Narula (1.23 per cent), and Narin Narula (1.51 per cent), Ravisara Narula (1.24 per cent), Indrani Narula (0.8 per cent), Amarin Narula (0.64 per cent), Sunita Narula (0.3 per cent) and other sellers unknown to the company (13.8 per cent).

Giant Mauritius Holdings and Hotel & Property Development Co Ltd will later conduct a tender offer for the remaining shares. The share purchase was more than 25 per cent of the company's stock, the trigger point that requires the buyers to tender for its remaining shares under Securities and Exchange Commission rules.

Giant Mauritius Holdings' registered capital is US$1,000 (Bt38,200), while Hotel & Property Development, a Thailand-domiciled company that is 99.9-per-cent owned by Hotel & Property Development Holdings, has registered capital of Bt20 million.

The Westin Grande is managed by the Star Wood group.

An analyst at a local brokerage said the success of the deal would depend largely on the new shareholders' potential for business development. He placed a "sell" recommendation for Grande Asset stock with a target price of Bt3.87 per share after the capital increase, down from an earlier target of Bt4.02.

Siriporn Chanjindamanee

The Nation