Minority shareholders of Hang Lung Group and Hang Lung Properties have been advised to vote in favour of a group restructuring involving the HK$1.25 billion privatisation of Grand Hotel Holdings.
UBS Warburg Asia and NM Rothschild & Sons, financial advisers to independent shareholders of Hang Lung Group and Hang Lung Properties, respectively, said the terms of the proposal were fair and reasonable.
Under the reorganisation, Hang Lung Properties will acquire its parent Hang Lung Group's stake in Grand Hotel for HK$924.4 million. It will then make a general offer to Grand Hotel's minority shareholders.
Hang Lung Group holds 74.1 per cent of the A shares and 69.6 per cent of the B shares in Grand Hotel. It also owns 61.2 per cent in Hang Lung Properties.
The offer for Grand Hotel is pitched at HK$1.84 per A share and 18.4 HK cents per B share. It represents a 25.1 per cent discount to net asset value (NAV), estimated at HK$2.46 per A share and 24.6 cents per B share.
UBS Warburg, for Hang Lung Group shareholders, listed nine comparable hotel firms, including Mandarin Oriental, Shangri-La Asia, Hongkong & Shanghai Hotels, Great Eagle Holdings and Sino Hotels for comparable analyses to back its recommendation.
