Jardine Matheson Holdings has agreed to buy the remaining 11.96 per cent of hotel arm Mandarin Oriental International it does not already own, as the century-old conglomerate ramps up efforts to increase investor returns.
Mandarin Oriental shareholders would receive US$3.35 in cash per share in a deal that valued the hotel chain at about US$4.2 billion, Jardine said in a statement on Friday. The total value represented a premium of 40 per cent to Mandarin Oriental’s closing price on Thursday, according to Bloomberg calculations.
The move to take full ownership of the hotel firm comes as Jardine seeks higher returns from its sprawling businesses through management changes and non-core asset disposals.
The 193-year-old group recently announced a strategic shift from being an owner-operator to an “engaged long-term investor” in its portfolio companies with a focus on increasing shareholder returns. In May, it appointed Lincoln Pan, who was co-head of private equity at PAG, as CEO to replace a three-decade veteran.
China’s e-commerce leader and its fintech affiliate would use the space for their local headquarters, the companies said in separate statements.
