Hotel co seeking $112m

Last updated 05:00 18/02/2014

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Millennium & Copthorne Hotels is seeking about $112 million in a preference share issue for its Chinese property investment company, the repaying of debt and for continued refurbishment.

Yesterday the listed company, which last week reported a profit of $32.2m for the year ended December 31, announced it was offering 1 preference share for every 2 ordinary shares at a price of 64 cents each.

It said about $60m of the $112m it hoped to raise would be spent supporting a capital raising by First Sponsor, a property development company in Southern and Western China in which it held a 34 per cent interest.

Last week Millennium announced it intends to undertake a capital raising to meet a capital call from its 34 per cent-owned subsidiary, First Sponsor Capital.

Millennium's share of the call would be about $60m as it intends to maintain its current percentage shareholding in First Sponsor Capital.

About $40m would be spent on the repayment of bank debt while the remaining $12m towards planned refurbishment works.

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- BusinessDay

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