Proposed Acquisition of Hayman Island Resort
Document date:
Fri 20 Mar 1998
Published:
Fri 20 Mar 1998 00:00:00
Document No:
156871
Document part:
A
Market Flag:
Y
Classification:
BT HOTEL GROUP 1998-03-20 ASX-SIGNAL-G
HOMEX - Sydney
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BT HOTEL TRUST - VARIATION OF INVESTMENT POLICY
You will find attached a copy of an announcement made to the
Australian Stock exchange by BT Hotel Group today. The announcement
advises that BT Hotel Group is currently undertaking due diligence
in respect of the possible purchase of the Hayman Island Resort as
well as a 50% shareholding in Hamilton Airport Pty Ltd (Hamair) from
Ansett Australia Limited.
I is not expected that any binding commitment to acquire the assets
would be made until 15 April 1998 at the earliest.
We consider that the acquisition of shares in Hamair is a
strategically significant component of the Hayman Island
transaction. Hamair is the lessee and operator of Hamilton Island
Airport, which is currently the point of access to Hayman Island for
more than 90% of guests. We therefore consider it crucial that an
appropriate access regime is secured via the airport in the medium
to long term.
Even though there is an obvious commercial interdependence between
Hayman Island Resort and the airport at Hamilton Island, the
acquisition of 50% of Hamair may nonetheless require a variation in
the trust's investment policy as disclosed in the original
Prospectus for BT Hotel Group and the 1997 Annual Resort.
This variation does not represent a fundamental change in our
investment strategy, but rather a broadening of the current policy
to allow for the acquisition of assets other than just hotels, where
the acquisition of those assets is considered to be of strategic
importance to the pursuance of the trust's primary investment
policy. We also need to ensure that, depending on the
circumstances, the trust's hotels can be managed by BT Hotel Limited
itself as well as via independent operators.
The variations will take effect regardless of whether the
acquisition of Hayman Island and Hamair shares proceeds, as it will
give us greater flexibility to pursue appropriate investment
opportunities.
Therefore, as from 15 April 1998, the investment policy of BT Hotel
Trust is:
(a) to invest in and operate via BT Hotel Limited or independent
operators, in Australia, New Zealand and the Pacific:
- Hotels and resorts
- Hotel and resort development
- Infrastructure, equipment and activities which form an integral
part of, are associated with or exert a commercial influence upon a
hotel or tourism asset
(b) to invest in securities of other companies and trusts, in
Australia, new Zealand and the Pacific, which invest primarily in,
or own hotels and/or related assets or infrastructure.
The expanded investment policy will not require any changes to the
BT Hotel Trust Deed.
Thank you for your investment in BT Hotel Group. If you have any
questions regarding either this letter or your investment, please do
not hesitate to contact our Client Services Representative on
freecall 1800 023 336.
B Morris
FUND MANAGER
BT HOTEL TRUST
PROPOSED ACQUISITION OF HAYMAN ISLAND RESORT
BT Hotel Group confirms that it is currently undertaking exclusive due
diligence for a limited period in respect of a proposed purchase of
Ansett Australia Limited's ("Ansett"), Hayman Island Resort and its
50% shareholding in Hamilton Airport Pty Limited ("Hamair").
Hamair is currently jointly owned by Ansett and a Hamilton Island
Limited subsidiary in equal shares and operates the Hamilton Island
Airport. This airport is the main access route for both Hamilton
Island and Hayman Island guests. A 50% interest in Hamair is
considered to be integral to the acquisition by BT Hotel Group in
order to ensure an appropriate access regime to the Resort via the
Hamilton Island Airport is secured in the medium to long term.
Negotiations in respect of terms for the purchase of Hayman and the
future co-ownership of Hamair are taking place. These are not yet
finalised and the outcome of any negotiations and due diligence will
be subject to various approvals.
If the acquisition proceeds, a further statement will be made on
exchange of formal contracts.
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