The independent directors of Millennium & Copthorne Hotels New Zealand Limited (MCK) have deemed a takeover bid by CDL Hotels Holdings New Zealand Limited (CDLHH NZ) as “too low and inadequate,” according to a recent stock exchange filing.
On 20 January, MCK received a takeover notice from CDLHH NZ, which currently holds 75.8% of MCK’s shares. The proposed offer stands at $2.25 per share for the remaining shares not already owned by CDLHH NZ. However, the independent directors argue that the offer fails to provide sufficient value for minority shareholders.
Leslie Preston, Chair of the Independent Directors Committee, advised shareholders against taking immediate action. “We will provide shareholders with a Target Company Statement within the next two weeks that will include more detail, but we are advising shareholders to take no action at this time,” she stated.
The forthcoming Target Company Statement is expected to offer a detailed assessment of the offer and provide guidance for minority shareholders. Until then, the independent directors are urging investors to wait before making any decisions regarding their shares.
MCK, a prominent player in New Zealand’s hospitality sector, operates a portfolio of hotels across the country. The response from the independent directors signals a potential challenge to CDLHH NZ’s bid, with shareholders now awaiting further information before determining their next steps.