Millennium & Copthorne rejects CDL offer

11th February 2025 By Paul Yandall | paul@propertyticker.co.nz | @propertyticker

Millennium & Copthorne Hotels New Zealand has rejected an offer from majority owner CDL Hotels Holdings New Zealand to buy out the remaining stake of the business.

CDL, owned by Singapore-listed City Developments Limited, sent its takeover offer to Millennium & Copthorne’s shareholders on Monday. 

It proposed in January to buy the remaining 24% of the hotel owner-operator that it does not yet own and offered $2.25 per share, a 25% premium on the relevant closing price of $1.80, valuing Millennium & Copthorne at just over $237m.

“The view of your independent directors is that the CDHL NZ offer is too low and is inadequate,” the national hotel company said in a statement on Monday afternoon.

“The independent directors believe that the Offer does not sufficiently reflect the value of MCK’s hotel and property net assets, and the benefits that MCK can expect as the hotel and property markets recover.

“Shareholders are advised to take no action and ignore the offer documents until they have received the Target Company Statement from MCK.” 

Millennium & Copthorne added that this would be sent to shareholders on 24 February 2025 and will include the recommendation from the independent directors and the independent adviser’s report.

The company is the only NZX listed hotel owner-operator, with 19 owned, leased, and franchised hotels based in New Zealand under the Millennium, Grand Millennium, M Social, Copthorne and Kingsgate brands.