THO Thistle Hotels

RNS No 7675a
THISTLE HOTELS PLC
17th August 1998

                     Thistle Hotels Plc ("Thistle Hotels")

On 9th June 1998 the Board of Thistle Hotels announced that it had received
approaches from third parties concerning offers for the group.  Thistle Hotels
has since conducted a wide-ranging review of all expressions of interest in
the group.  The Board's objective was to secure a proposal which returned
value to shareholders.  Following consideration of all proposals, the Board
has recently been in advanced discussions with one party that, at Thistle
Hotels' option, would have led to a cash offer for the whole group or for a
substantial part of the group.  It was the Board's intention to return the
proceeds from an offer for a substantial part of the group to shareholders.
However, the volatility in financial markets over the last week led this party
to reconsider its position and put forward revised proposals.  The Board of
Thistle Hotels has decided that the revised proposals are unacceptable and
consequently these discussions and the sale process have now been terminated.

The Board believes that Thistle Hotels has a portfolio of hotel assets which
has excellent potential.  It is disappointing that the sale process did not
produce an offer at a value that reflected this, which the Board could
recommend to shareholders.  However, the performance of the business continues
to improve under the leadership of Ian Burke and the Board is confident that
this will lead to a significant enhancement in shareholder value over the
medium term.

One of the main objectives throughout this sale process has been to return
cash to shareholders.  As the group is enjoying strong cashflows, the Board is
currently considering a restructuring which will result in a substantial
return of cash to shareholders, while enhancing earnings per share and
maintaining a sound financial position.  It expects to be in a position to
announce details of the proposed restructuring shortly.

The Board expects to confirm good progress for the half year when the interim
results for the 28 weeks to 12th July 1998 are announced on 9th September
1998.

Enquiries:

Thistle Hotels Plc                  0171 518 6800    
Rodney Price, Chairman                               
                                                     
Greenhill & Co., LLC                0171 440 0400    
Simon Borrows                                        
                                                     
Hogarth Partnership Limited         0171 357 9477    
Rachel Hirst                        


END

MSCPRMRBLLBBBAP

Thistle Hotels (LSE:THO)
Historical Stock Chart
From Jun 2024 to Jul 2024

Thistle Hotels (LSE:THO)
Historical Stock Chart
From Jul 2023 to Jul 2024