CDL has maintained a majority shareholding of MCK since 1999 and increased its shareholding to 76 percent in late 2024. Photo: RNZ / Dan Cook
The majority owner of New Zealand hotel company Millennium & Copthorne Hotels (MCK) is proposing a full takeover of the remaining shares in the company.
CDL Hotels Holdings New Zealand, owned by Singapore-listed City Developments Limited (CDL) has given notice that it intends to make an offer to buy the remaining 24 percent of ordinary shares in MCK for $2.25 per share.
It valued the company at just over $237 million, and represented a 25 percent premium on Friday's closing price of $1.80.
CDL has maintained a majority shareholding of MCK since 1999 and increased its shareholding to 76 percent in late 2024.
"We continue to be supportive of MCK's strategy and acknowledge that there is a hotel refurbishment programme ongoing, requiring a greater level of investment in MCK's assets which have aged," CDL group chief executive Sherman Kwek told shareholders.
"We can confirm that there are no intended changes to MCK's management team, and that MCK's headquarters will remain based in Auckland, New Zealand. It is intended to maintain business as usual for all staff, customers and suppliers," he said.
MCK told shareholders to "not sell pending further advice".
It said MCK had formed a committee to consider a response to the takeover notice.
"MCK recommends that shareholders do not take any action in respect of their ordinary shares until they receive a target company statement, including any recommendation from the committee of independent directors of MCK, and an independent adviser report as required under the Takeovers Code," MCK said.
The offer was subject to a number of conditions, including shareholder and regulatory approval.
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