Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Millennium and Copthorne seeks $112M in preference issue

Millennium and Copthorne seeks $112M in preference share issue for Chinese venture, to repay debt

Feb. 17 (BusinessDesk) - Millennium & Copthorne Hotels New Zealand, which operates 22 hotels across the country, is seeking about $112 million in a preference share issue to support a capital raising by its Chinese investment unit ahead of a proposed float, to repay debt and refurbish properties.

The Auckland-based company is offering 1 preference share for every 2 ordinary shares at an issue price of 64 cents each. The preference shares rank equally with ordinary shares for dividend entitlements, but won’t have any voting rights. Eligible shareholders will be able to apply for any preference shares not taken up by other investors.

Millennium anticipates about $60 million raised will go towards supporting a capital raising by First Sponsor, which has property development interests in China, to fund further development in Chendgu City, Sichuan Province, and new land acquisitions in Dongguan City, Guangdong Province, and to prevent having its investment diluted.

That comes as First Sponsor prepares an initial public offering of one of its own subsidiaries this year on the Singapore Exchange. If the float goes ahead and Millennium retains its existing stake in First Sponsor, it anticipates holding about 31 percent of the new listed company.

Millennium plans to spend about $40 million raised on repaying bank debt, with the rest put towards refurbishing hotels in Auckland and Palmerston North.

Last week the company reported a 37 percent drop in 2013 profit to $32.2 million, reflecting one-off earthquake-related insurance payments the year before.

The shares fell 1.5 percent to 65 cents today, and have shed 7 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Half Empty: Dairy Product Prices Drop To Lowest Since December 2012

Dairy product prices fell to the lowest level since December 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and anhydrous milk fat. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news