Singapore-based City Developments Limited has submitted an offer via its New Zealand subsidiary to acquire all the remaining shares in Millennium & Copthorne Hotels New Zealand for 57.3 million New Zealand dollars ($32.5 million).
CDL announced the proposal in a news release posted on New Zealand’ stock exchange, NZX.
Most of Millennium & Copthorne Hotels has been delisted since 2019. Formerly headquartered in London, the Millennium & Copthorne Hotels brand has been a full subsidiary of CDL since October 2019 when CDL acquired approximately 90% of M&C shares. At the time, CDL planned to acquire any remaining shares by the end of November of that year.
In 2019, M&C had a market capitalization of £2.23 billion ($2.75 billion) and approximately 120 hotels, which at the time it either owned, managed or both. Its New Zealand operations is one parcel of M&C that remains publicly listed.
Now, CDL is proposing to acquire any remaining unowned shares for 2.25 New Zealand dollars per share from Millennium & Copthorne Hotels New Zealand, which operates 18 hotels in the country.
The offer does not include preference shares, but CDL said it is willing to acquire those for 1.70 New Zealand dollars per share.
It then plans to delist its New Zealand subsidiary, which at press time has a market capitalization of 223.1 million New Zealand dollars.
Globally, Millennium & Copthorne Hotels has 137 hotels, including 31 in the United Arab Emirates, 18 in the United Kingdom and 14 in China.
In a statement on NZX, Millennium & Copthorne Hotels New Zealand — listed as MCK NZ — said it has appointed independent advisors to report on CDL’s offer but “recommends that shareholders do not take any action in respect of their shares until they receive a target company statement, including any recommendation from independent directors of MCK, and the independent adviser’s report.”
In January, Millennium & Copthorne Hotels New Zealand completed its acquisition of the 67-room Mayfair Hotel Christchurch, which opened in June 2022 in the largest city in New Zealand’s South Island. The company bought the freehold property from Centro Roydvale Limited for 31.9 million New Zealand dollars.