City Developments Limited (CDL), a subsidiary of CDL Hotels Holdings New Zealand Limited (CDLHH NZ), has proposed to purchase all outstanding shares of New Zealand-listed Millennium & Copthorne Hotels New Zealand Limited (MCK) for NZ$2.25 ($1.72) per share. CDL intends to delist and privatise MCK following the completion of the offer, simplifying the ownership structure of its New Zealand entities, according to a Jan 20 filing.
MCK currently owns, leases, or franchises 18 hotels in New Zealand and has a majority stake in CDL Investments New Zealand Limited, as well as interests in Australian properties through its Kingsgate Group subsidiaries.
CDLHH NZ currently holds 80.02 million shares in MCK, representing a 75.86% stake based on a total of 105.48 million MCK shares in issue. If CDLHH NZ reaches the threshold to invoke compulsory acquisition under the New Zealand takeovers code, it will acquire all remaining shares in MCK. It may …