MCK
24/12/2014 09:01
ASSET
PRICE SENSITIVE
REL: 0901 HRS Millennium & Copthorne Hotels New Zealand Limited
ASSET: MCK: Acquisition of Remaining Shares in KIN Holdings Limited
Millennium & Copthorne Hotels New Zealand Limited (NZX:MCK) advises that it
has today entered into a conditional agreement with the Tai Tak Group (Tai
Tak) for the acquisition of the remaining 38.7% of the shares in KIN Holdings
Limited (KIN Holdings) which MCK does not already own.
KIN Holdings is currently the holding company for MCK's Australian operations
and assets, which include the residential units at the Zenith Residences in
Sydney and a sales office.
The price agreed for the acquisition of the shares is NZ$ 31 million in cash,
which is subject to adjustment in relation to working capital.
Completion of the purchase is subject to approval by the Australian Foreign
Investment Review Board (FIRB) and is expected to take place on the last
business day of the month in which that approval is obtained.
MCK's acquisition of the minority interest in KIN Holdings ends a long
established association in Australia with the Tai Tak Group, a Singaporean
family-owned private investment group, that started in the early 1990s. KIN
Holdings and its subsidiaries, which included the formerly listed Kingsgate
International Corporation Limited, owned and developed a number of
residential and commercial mixed-used developments and other assets in Sydney
such as the Birkenhead Point Marina development in Drummoyne and Kingsgate
Shopping Centre in Potts Point (which were progressively sold in the early
2000s). More recently, MCK and Tai Tak were involved as foundation
shareholders in First Sponsor Group Limited which listed on the Singapore
Exchange earlier this year.
MCK's Managing Director, Mr. B K Chiu, thanked the Tai Tak Group for their
involvement in the joint operation over more than twenty years.
"The Tai Tak Group have been long term investors with us in Australia and
more recently in China and we have greatly appreciated their input. We fully
respect and appreciate that their investment focus has shifted to other
directions and we thank them for their unqualified support", he said.
MCK applied for, and has been granted, a waiver from the requirement under
Rule 9.2.1 of the NZX Main Board Listing Rules to obtain the prior approval
of MCK shareholders in relation to the acquisition of the remaining KIN
Holdings shares. NZX Regulation will announce that waiver decision today. The
waiver was required because:
--the purchase price is approximately 22% of MCK's current average market
capitalisation. As such, the acquisition will be a "Material Transaction"
under the NZX Main Board Listing Rules; and
--MCK and Tai Tak are "Related Parties" for the purposes of the NZX Main
Board Listing Rules.
ENDS
Enquiries: Millennium & Copthorne Hotels New Zealand Limited (09) 353 5058
BK Chiu / Takeshi Ito
Managing Director / Group Company Secretary
End CA:00259381 For:MCK Type:ASSET Time:2014-12-24 09:01:56
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