In today’s briefing:
- Mandarin Oriental (MAND SP): Jardine Matheson’s Attractive Scheme Offer
- Mandarin Oriental: Good Deal for Jardine, Not So Much for Mandarin Oriental Minorities
Mandarin Oriental (MAND SP): Jardine Matheson’s Attractive Scheme Offer
- Mandarin Oriental International (MAND SP) disclosed a privatisation offer from Jardine Matheson Holdings (JM SP) at US$3.35 (US$2.75 cash + US$0.60 special dividend), a 39.6% premium to the last close.
- The special dividend represents the majority of the proceeds from the sale of the top thirteen floors of One Causeway Bay (OCB) to Alibaba and Ant Group for US$925 million.
- The offer is final. The scheme is conditional on the completion of the OCB sale and Mandarin shareholder approval. This is a done deal due to an attractive offer.
Mandarin Oriental: Good Deal for Jardine, Not So Much for Mandarin Oriental Minorities
- Jardine Matheson Holdings (JM SP) has proposed to take Mandarin Oriental International (MAND SP) private
- While the deal has a high chance of success, given the 88% ownership of MAND by JM, it undervalues Mandarin Oriental significantly.
- Jardine is effectively paying for the fair value of One Causeway building and is getting global hotel operations for a bargain price.
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