Orient-Express Hotels has rejected what it called an “unsolicited approach” from The Indian Hotels Company.
Indian Hotels, which is currently Orient-Express’ second biggest shareholder, had offered to pay US$12.63 per share in cash for the remaining stake, in a deal worth around US$1.2 million. This was rejected by Orient-Express, which said the bid “significantly undervalues” the company and is “not in the best interests of Orient-Express and its shareholders”.
“We carefully evaluated the Indian Hotels Proposal in that spirit but unanimously concluded it is deeply unattractive from a financial perspective,” said J. Robert Lovejoy, chairman of the Orient-Express board. “The board believes the current macroeconomic environment, conditions in the luxury hotel business and factors unique to Orient-Express would make this a highly disadvantageous time to sell the Company to realise its true value.”
Meanwhile, Orient-Express has appointed John M. Scott III as its new president and CEO. Scott, 47, most recently served as president and CEO of Rosewood Hotels & Resorts and holds a Master’s degree from Harvard Business School.