Independent directors of Millennium and Copthorne Hotels have described a takeover bid by its majority shareholder CDL Hotels Holdings New Zealand Ltd as "too low" and "inadequate".
Last month, CDL Hotels Holdings New Zealand Ltd — which is owned by Singapore-listed City Developments Ltd — announced the offer to buy all of the ordinary shares that it did not already own, at $2.25 a share.
In an update to shareholders yesterday, Millennium and Copthorne Hotels New Zealand independent directors committee chairman Leslie Preston said the independent directors believed the offer did not sufficiently reflect the value of MCK’s hotel and property net assets and the benefits MCK could expect as the hotel and property markets recovered.
Shareholders were advised to not take action and to ignore the offer document until they had received the target company statement from MCK which would be sent to shareholders on February 24.
Northington Partners had bene appointed by MCK to act as the independent adviser to provide an independent assessment for shareholders of the merits of the CDLHH NZ offer.
