CDL Hotels bids for remaining Millennium & Copthorne shares

City Developments subsidiary, CDL Hotels Holdings New Zealand, has made an offer to acquire the remaining 24.14% of ordinary shares in Millennium & Copthorne Hotels New Zealand that it does not already own.

The offer price is $2.25 per share.

CDL Hotels increased its shareholding in Millennium & Copthorne to 75.86% in October 2024.

The company said the offer represents a 25% premium to the last closing price of $1.80 on January 17, 2025.

It also cited the need for a greater level of investment in Millennium & Copthorne's assets as a reason for the acquisition.

The offer is subject to conditions, including obtaining sufficient acceptances and Overseas Investment Office consent.

CDL Hotels intends to maintain Millennium & Copthorne's management team and headquarters in Auckland.

Shareholders with redeemable preference shares are not included in the offer, but CDL Hotels is willing to acquire those shares.

The offer will close on May 2, 2025, unless extended.