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

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news