Guoco extends offer for BIL

Hong Kong's Guoco Group has extended its takeover bid for BIL International to the end of September after failing to win control of the investment company founded by Sir Ron Brierley.

Guoco, a property developer controlled by Malaysian tycoon Quek Leng Chan, offered S$1.20 ($1.01) for the BIL shares it did not already own in July. The bid valued the former New Zealand company at S$1.64 billion and was due to end on September 2.

Although Guoco already held 39.95 per cent of BIL before the offer, BIL company secretary Jane Teah said yesterday that as at September 1, the Hong Kong company did not control the 50 per cent of voting rights needed to declare its offer unconditional.

Guoco's offer, made through subsidiary High Glory Investments, will now close at 3.30pm (Singapore time) on September 30.

BIL began as Brierley Investments in 1961, but shifted its primary stock exchange listing from New Zealand to Singapore in 2000, and now has assets as diverse as British hotel chain Thistle Hotels, the Denarau Resort in Fiji and Australian energy company Bass Strait Oil Trust. Quek joined the board in 1997 after his company took a 20 per cent stake and became chairman in 2001 after Sir Ron's retirement.

Analysts had earlier raised doubts that the offer would succeed as it was below BIL's per share net asset backing when it was made, while many property companies traded at a premium to their asset backing.

The 7.4 per cent stake of Singapore businessman Oei Hong Leong was also considered crucial to the bid. That stake sold for an undisclosed sum on August 20.