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

 


Millennium & Copthorne mulls capital return

Millennium & Copthorne mulls capital return if First Sponsor float proceeds

By Paul McBeth

Apr. 23 (BusinessDesk) - Millennium & Copthorne Hotels New Zealand, which operates 22 hotels across the country, is mulling a capital return if the float of Chinese investment First Sponsor Group goes ahead.

The Singapore Exchange has issued an eligibility to list letter for the proposed initial public offering, which will probably be in the third quarter if it proceeds, the Auckland-based company said in a statement.

"In connection with the proposed FGSL (First Sponsor Group) IPO (and as mentioned in the offer document for our recent rights issue), MCK (Millennium) is considering undertaking, return of capital whereby MCK's investment in FSGL would be returned to our shareholders," it said. "MCK wishes to emphasise that no decision has been made as to whether (or when) the proposed capital return will take place and there currently is no certainty that the proposed FSGL IPO will proceed (or as to its timetable)."

Last month Millennium raised about $112 million to maintain its investment in First Sponsor in a capital raising, repay debt and refurbish properties. It has previously said it expects to retain a 31 percent stake in First Sponsor if the float proceeds.

First Sponsor, which has property development interests in China, raised funds to pay for further development in Chendgu City, Sichuan Province, and new land acquisitions in Dongguan City, Guangdong Province.

Shares in Millennium rose 4.8 percent yesterday to 66 cents, and have shed 7 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Half Empty: Dairy Prices Drop To Lowest Since August 2009

Dairy product prices fell to the lowest level in more than five years in the latest GlobalDairyTrade auction, led by declines in butter milk powder and whole milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news