Millennium & Copthorne Hotels NZ climbs to 1-1/2-year high after takeover bid

Millennium & Copthorne Hotels New Zealand

20/01/2025 24:55

Jan 20 (Reuters) - Shares of Millennium & Copthorne
Hotels New Zealand  MCK.NZ  surged to a 1-1/2-year peak on
Monday, after the majority owner proposed a full takeover,
valuing the hotel operator at NZ$237.3 million ($132.67
million).
    The company's shares jumped 17.8% to NZ$2.12, their highest
levels since May 15, 2023. The stock was the top performer in
the benchmark S&P/NZX 50 index  .NZ50 , posting its largest
intraday percentage gain since July 18, 2014.
    Millennium & Copthorne NZ received a takeover offer from its
major shareholder, CDL Hotels Holdings New Zealand, a subsidiary
of the Singapore-listed real estate firm City Developments
 CTDM.SI , to acquire the remaining 24.14% stake for NZ$2.25 per
share.
    The offer price represents a 25% premium on the stock's last
close of NZ$1.8 on Friday.
    "We have been a supportive shareholder of MCK for the
duration of its period as a listed entity, maintaining our
majority shareholding since listing in 1999. 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 Hotels NZ
said in a statement on Monday.
    Millennium & Copthorne NZ was formerly a subsidiary of
Britain's Millennium & Copthorne Hotels, which was acquired by
City Developments in 2019 in a deal that valued the previously
London-listed hotel operator at about 2.23 billion pounds.
    
     ($1 = 1.7886 New Zealand dollars)

    

 (Reporting by Nikita Maria Jino in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((Nikita.Jino@thomsonreuters.com;))