Cdl Offers Privatise Millennium Copthorne Hotels New Zealand 172 Share
CDL, a leading real estate developer, has announced that its wholly-owned subsidiary, CDL Hotels Holdings New Zealand Limited, is set to acquire all outstanding shares of New Zealand-listed Millennium & Copthorne Hotels New Zealand Limited (MCK) for NZ$2.25 ($1.72) per share. This move follows CDL’s plan to delist and privatise MCK, which will simplify the ownership structure of its New Zealand entities.
MCK currently owns, leases, or has under franchise 18 hotels in New Zealand and also has interests in properties in Australia through its Kingsgate Group subsidiaries. As of Jan 17, CDLHH NZ holds 80.02 million shares in MCK, representing a 75.86% stake based on 105.48 million MCK shares in issue. If CDLHH NZ reaches the threshold to invoke the compulsory acquisition provisions, it will compulsorily acquire all outstanding shares in MCK. CDLHH NZ may also redeem the non-voting redeemable preference shares issued by MCK at a price of NZ$1.70 ($1.30) per share.
CDL expects to pay a total consideration of NZ$57.29 million for all outstanding shares in MCK and an additional NZ$7.77 million for the redeemable preference shares. The offer price takes into account the current and historical market price as well as the industry and business environment in which MCK operates. MCK recorded a net asset value (NAV) of NZ$532.02 million and a net tangible asset value (NTA) of the same for 1HFY2024. As of June 30, 2024, the NAV and NTA attributable to the MCK shares subject to the offer were approximately NZ$85.62 million each.
CDL’s offer is subject to certain conditions, including receiving 90% or more of the voting rights in MCK by May 2 and obtaining consent under the Overseas Investment Act 2005 and the Overseas Investment Regulations 2005 of New Zealand for CDLHH NZ to own and control all shares in MCK.
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The implementation and payment of the offer is not expected to have a significant impact on CDL’s earnings per share or net tangible assets for the fiscal year ending Dec 31, 2025.