City Developments Launches Takeover for Millennium & Copthorne Hotels NZ

Highlights:

• Takeover Offer Announced: City Developments Ltd (SGX: C09) has made a $2.25 per share offer to acquire the remaining 24.1% stake in Millennium & Copthorne Hotels New Zealand Ltd (NZX: MCK).
• Increased Stake Earlier: In October, City Developments raised its stake in MCK to 75.86% by purchasing a 5% shareholding from abrdn plc at $1.73 per share.
• Strategic Hospitality Expansion: The takeover aims to streamline ownership, enhance operational efficiency, and position MCK for growth as the tourism sector rebounds.

Takeover Bid Announced

City Developments Ltd (SGX: C09), a Singapore-listed real estate company, has announced a takeover offer for the remaining 24.1% shares it does not currently own in Millennium & Copthorne Hotels New Zealand Ltd (NZX: MCK). The offer is priced at $2.25 per share and is being made through its subsidiary, CDL Hotels Holdings NZ, which already holds a 75.86% stake in MCK.

Increased Stake Through Recent Acquisitions

City Developments increased its stake to 75.86% in October by acquiring a 5% shareholding from abrdn plc at $1.73 per share. This latest offer aims to consolidate full ownership of Millennium & Copthorne Hotels NZ, which operates a significant portfolio of hotels across New Zealand.

Fairness of the Offer

The offer price of $2.25 represents a premium compared to previous transactions, making it attractive for minority shareholders. City Developments stated that the takeover would simplify its ownership structure and provide a clear pathway for MCK’s future growth and strategy.

At the time of writing, the offer is pending acceptance from the remaining shareholders, who will decide whether to tender their shares under the proposed terms.

Outlook for the Hotel Operator

Millennium & Copthorne Hotels NZ is known for managing a diverse range of hotels in key tourist locations across New Zealand. A successful takeover by City Developments could streamline decision-making and provide additional resources to expand and modernize operations, particularly as the tourism sector continues to recover post-pandemic.

This move highlights City Developments' strategic interest in bolstering its hospitality portfolio, reinforcing its position as a major player in the global real estate and hospitality industry.

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