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

 

Revenue Renewal: Tax Modernisation Programme Launched

Revenue Minister Todd McClay today released the first two in a series of public consultations designed to modernise and simplify the tax system. More>>

ALSO:

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news