By Rajasik Mukherjee, Nikita Maria Jino and Yantoultra Ngui
(Reuters) -Hong Kong-based conglomerate Jardine Matheson said on Friday its unit would buy the rest of the shares of Mandarin Oriental it does not already own, valuing the hotel investment and management firm at $4.2 billion.
Jardine Matheson, a 193-year-old conglomerate with interests spanning property, retail and automotive, said in statement that full ownership of Mandarin Oriental will allow it to better support the hotel group’s growth and streamline its portfolio.
Mandarin Oriental operates 43 hotels, 12 residences and 26 luxury homes across 27 countries and territories, from Hong Kong to New York.
The offer coincides with Mandarin Oriental’s agreement to sell the top 13 floors of its flagship One Causeway Bay tower in Hong Kong to Alibaba Group and Chinese financial technology company Ant Group for $925 million.
Both companies were co-founded by Chinese billionaire Jack Ma. One Causeway Bay is a prime mixed-use property located in one of Hong Kong’s leading retail and business districts.
The offer for an 11.96% stake is priced at $3.35 per share, comprising $2.75 in cash and a special dividend of $0.60 per share funded by the Hong Kong property sale. The transaction will be financed through cash and committed facilities.
The total represents a 52% premium to the stock’s last unaffected price of $2.20 on Sept. 29, the day before Mandarin Oriental disclosed it was considering a possible sale of part of its interest in One Causeway Bay, according to the announcement.
Jardine Matheson said its Jardine Strategic buyout would eventually lead to Mandarin’s delisting from the Singapore stock exchange.
Shares of Mandarin Oriental have climbed by 37.9% year-to-date, while Jardine Matheson stock has surged by 49.2%, LSEG data showed.
Completion of the property sale, expected by December 31, is a condition for the buyout, which Jardine Matheson expects to close by February 28, 2026.
(Reporting by Rajasik Mukherjee and Nikita Maria Jino in Bengaluru and Yantoultra Ngui in Singapore; Editing by Vijay Kishore and Louise Heavens)
