City Developments (CDL)

[weijian]

I did not know that an Offerer has the power to restrict the BOD of a company from declaring/paying a dividend. In general, an Offerer generally accounts for the dividend in its offer price. In this particular case, the Kweks had actually rejected the Independent Committee's plead to waive the restriction. Have the angmohs been too brazen for their own good?

No FY24 final dividend given takeover offer conditions

21 February 2025: Millennium & Copthorne Hotels New Zealand Limited (NZX: MCK or the Company) refers to the takeover offer dated 10 February 2025 (the Offer) that it has received from CDL Hotels Holdings New Zealand Limited (CDLHH NZ). Clause 6.2(a) of the Offer contains a condition which restricts MCK from declaring or paying a dividend during the period from 20 January 2025 (when CDLHH NZ gave its takeover notice) until the time the Offer is declared unconditional (or the Offer lapses).

The Independent Committee formed to consider the Company’s response to the Offer requested CDLHH NZ to waive that condition to allow MCK to pay a final dividend in respect of its 2024 financial year (should MCK’s Board agree to pay such a dividend). CDLHH NZ has not agreed to that request.

https://links.sgx.com/FileOpen/MCK-Marke...eID=833775