In an offer tabled on Oct 17, Jardine Matheson is offering US$3.35 to buy out the remaining 13.46% held by other shareholders, valuing Mandarin Oriental at US$4.2 billion ($5.45 billion). At US$3.35, that’s a 52.3% premium to undisturbed, and a 53.7% premium to the company’s net asset value (NAV) of US$2.18 per share.
Jardine Matheson is offering to privatise its closely held subsidiary Mandarin Oriental International. The deal, timed with the sale of a key chunk of assets in the latter, is part of an overall deleveraging move that is cheered by analysts.
David Blennerhassett of Quiddity Advisors is bullish on Mandarin Oriental, after the Hong Kong-based hotel operator received a takeover offer from its controlling shareholder, Jardine Matheson.
