Millennium & Copthorne Hotels New Zealand's independent directors have recommended that shareholders do not accept the takeover offer from CDL Hotels Holdings NZ.
The offer, made on Feb 10, 2025, was priced at $2.25 per ordinary share.
The independent directors believe this offer is too low and inadequate, as it is significantly below the independent adviser's valuation range of $4.40 to $5.00 per ordinary share.
They argued that the offer price does not adequately reflect the market value of the company's hotel and property assets, as well as the recent investments made in refurbishments, upgrades, and acquisitions.
The independent adviser, Northington Partners, also concluded that the offer significantly undervalues the company.
Shareholders are encouraged to read the target company statement and seek professional advice before making a decision.
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