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- Release Date: 27/09/13 17:55
- Summary: GENERAL: MCK: MCK: Increase in investment in First Sponsor
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MCK
27/09/2013 15:55
GENERAL
REL: 1555 HRS Millennium & Copthorne Hotels New Zealand Limited
GENERAL: MCK: MCK: Increase in investment in First Sponsor
MCK INCREASES ITS INVESTMENT IN FIRST SPONSOR
Millennium & Copthorne Hotels New Zealand Limited (NZX: MCK) announced today
that it is to increase its investment in its associate company First Sponsor
Capital Limited (FSCL) by USD 33.42 million, being its share of a capital
call made by FSCL.
The additional investment will take the form of new preference shares in
FSCL. MCK will be providing its pro rata share of the required capital in
order to maintain its holding of preference shares in FSCL. After the issue
of the new preference shares (which is expected to occur today), the MCK
Group will remain at approximately 34% of FSCL.
FSCL requires additional funding for further expansion, in particular the
development of its properties in Chengdu, Sichuan Province, China.
MCK applied for, and has been granted, a waiver from the requirement under
Rule 9.2.1 of the NZSX Listing Rules to obtain the prior approval of MCK
shareholders in relation to the additional investment. NZX Regulation will
announce that waiver decision today. The waiver was required because:
--the MCK group (including a majority-owned Australian subsidiary) will be
providing funding totalling approximately 18% of MCK's current market
capitalisation. The acquisition will therefore be a "Material Transaction"
under the NZSX Listing Rules; and
--MCK and FSCL are "Related Parties" under the NZSX Listing Rules as MCK,
FSCL and a number of MCK's subsidiaries have common directors.
ENDS
Issued by Millennium & Copthorne Hotels New Zealand Limited
Enquiries to:
B K Chiu
Managing Director
Millennium & Copthorne Hotels New Zealand Limited
(09) 353 5058
End CA:00241722 For:MCK Type:GENERAL Time:2013-09-27 15:55:10
