MCK - Millennium & Copthorne Hotels NZ Limited

[Basil]

Southern Lad on the other channel posted this.

CDL Hotel Holdings New Zealand Ltd holding in MCK at 79.634% with three days until offer closes. Given ACC stating it won't accept, on-market buying at reasonable volumes and lack of independent directors support, I'm assuming not much chance they get to 90%. Assuming they fall short, will be interesting to see what happens to the share price over the next few months. Presumably shareholders who have chosen not to sell at $2.80 will be reluctant to sell for less in any volume.

Disclosure was just after 5.00 p.m. today so i missed it but here it is.  Still not quite at 80%  https://api.nzx.com/public/announcement/451053/attachment/442689/451053-442689.pdf

When they started this they had 75.9% so they have managed to increase that by 3.73%..  There are three days until the offer closes on 8 May at 5.00 p.m.

[Crackity]

Sharesies holders can't accept the offer even if they want to 

This response forwarded to me - appalling by Sharesies



Thanks for reaching out 🍍

Unfortunately, we don't currently support elective participation in voluntary takeover offers. However, if the offer reaches 90% acceptance, all outstanding shares will be compulsorily acquired and the consideration will be paid out to all shareholders.

If you'd like to participate individually, you can transfer your shares to your personal CSN and accept the offer by following the instructions in the "how to accept this offer" section in the offer document.

You can also read the latest director's recommendation here.

Please let me know if you have any further questions.

Kind regards,
Susie
Susie
Sharesies

[ValueNZ]

Sharesies holders can't accept the offer even if they want to 

This response forwarded to me - appalling by Sharesies



Thanks for reaching out 🍍

Unfortunately, we don't currently support elective participation in voluntary takeover offers. However, if the offer reaches 90% acceptance, all outstanding shares will be compulsorily acquired and the consideration will be paid out to all shareholders.

If you'd like to participate individually, you can transfer your shares to your personal CSN and accept the offer by following the instructions in the "how to accept this offer" section in the offer document.

You can also read the latest director's recommendation here.

Please let me know if you have any further questions.

Kind regards,
Susie
Susie
Sharesies

WTF...

Ask for it to be transferred at their cost.

[Basil]

What a sad and pathetic situation that is for MCK shareholders with Sharsies then, but Sharsies are probably doing their customers a favour.  Wait until the real takeover next year at fair value $4.70 + accrued earnings, say $5 in total by early 2026.  This current attempt is good old fashioned highway robbery masquerading as a takeover attempt.

[Raven]

Sharesies is not a "full service" service They do not support a lot of things. Whilst they support most corporate actions on the NZX, and support dividend reinvestment schemes for the main companies on NZX, they offer very little support for ASX and USA. For example if an ASX company has a capital raising for a holding you own on Sharesies you cannot participate through Sharesies. A serious drawback for anyone who fancies their chances investing in smaller ASX companies that are capital hungry, e.g. the miners.

[Crackity]

Sharesies is not a "full service" service

They are apparently the disrupters aiming for the main stream - this is their front page on sharesies


Sharesies exists to make investing easy and accessible. Before, investing was too hard, too complex, and too damned scary for too many. Deciding to build an accessible digital investment platform was a no-brainer.

Our investing experience works towards giving people the confidence and control to invest. We believe that by giving someone the opportunity to invest—while supporting them to learn—we'll create a community of financially empowered people.

Now, over 800,000 investors are using Sharesies in Aotearoa and Australia. We're continuing to break down the barriers to investing for more Kiwis, and create new ways to help people develop their wealth.


So far they are not walking the talk I reckon


Booo Sharesies ( and I'm not a customer / I've gone for the too hard and scary option  )

[Basil]

Offer closes 5.00 p.m. tomorrow but I agree with a comment Crackity made to me recently that its likely to be extended as they try and shake as much low hanging fruit off the tree from weak holders as they can.

[Stoploss]

Looks like hotels hot property
 ( paywalled)
https://www.nzherald.co.nz/business/super-fund-russell-lockwood-selling-600m-national-hotel-portfolio/PHATT747IVEQPPQJVKRHT6EYKQ/

[Ferg]

Threshold not reached.....which is not really surprising....is it?

https://www.nzx.com/announcements/451358

[Ferg]

Another "boo" for terrible service at Sharesies.

I was trying to close out a position of 4,000 shares in its entirety using a limit sell order to match a buyer who wanted 10,000 shares.  I used a limit order to match their buy price, where the spread was around 4c on a $5 share.  Sharesies wouldn't put my order through at my price, instead putting me in a queue at the lowest sell price.  I didn't want to have my sell order nibbled at with multiple 5 and 10 shares purchases so I put a question to their help.  This was the reply from a human (after I initially battled with an AI bot):

{edited for brevity} "Limit orders are sent to the market as market orders.  They join the back of the queue at market price. Limit orders can't skip the queue and trade right away. Once your order gets to the front of the queue then the limit price comes into play. If you get to the front of the queue and we can get your limit price or better, then your order is filled."

That's pretty bad service IMO.  The buyer had been sitting there for some hours, as had the lowest seller.  Surely the point of a limit order is to jump the "queue" to sell at a lower price ....I can do it with a broker so why not with Sharesies?  I suppose it's one of the risks in trying to minimise brokerage fees by using Sharesies...

Sharesies holders can't accept the offer even if they want to 

This response forwarded to me - appalling by Sharesies



Thanks for reaching out 🍍

Unfortunately, we don't currently support elective participation in voluntary takeover offers. However, if the offer reaches 90% acceptance, all outstanding shares will be compulsorily acquired and the consideration will be paid out to all shareholders.

If you'd like to participate individually, you can transfer your shares to your personal CSN and accept the offer by following the instructions in the "how to accept this offer" section in the offer document.

[Basil]

Ferg, you know how this works mate.  you get what you pay for.  If you pay bugger all, you get crap service.

Interesting that the takeover offer has now closed, (I thought it might get extended).  Looks like, (subject to final wash up of possible late acceptances) they got 83.9%, about 8% more of the company or approx. 8 million shares at a dirt cheap price.  I am sure CDL are happy with that result.

I reckon its "game on", probably sometime in 2026 for their next attempt to mop up remaining ~ 16% of holders.  Next time they will have to offer a more fair and reasonable price.  Keep in mind that all they have to do is offer a fair and reasonable price for 16% of the shares and then they can mop up the ~ 9% of preference shares they don;t own at an egregiously unreasonable price, (20 day VWAP)  ACC reckon $2.80 was at over a 50% discount to NTA taking into account the preference share situation.

[KW]

Ferg, you know how this works mate.  you get what you pay for.  If you pay bugger all, you get crap service.

Interesting that the takeover offer has now closed, (I thought it might get extended).  Looks like, (subject to final wash up of possible late acceptances) they got 83.9%, about 8% more of the company or approx. 8 million shares at a dirt cheap price.  I am sure CDL are happy with that result.

I reckon its "game on", probably sometime in 2026 for their next attempt to mop up remaining ~ 16% of holders.  Next time they will have to offer a more fair and reasonable price.  Keep in mind that all they have to do is offer a fair and reasonable price for 16% of the shares and then they can mop up the ~ 9% of preference shares they don;t own at an egregiously unreasonable price, (20 day VWAP)  ACC reckon $2.80 was at over a 50% discount to NTA taking into account the preference share situation.

They can use the creep provisions to get to 90%.  Just sit in the market and absorb the people who suddenly need cash 

[Basil]

https://www.takeovers.govt.nz/guidance/guidance-notes/creeping

Creeping provisions are here.  I'm not going to try and untangle that today as to whether they are precluded from creeping for a period of time or not.  Obviously they've just increased their stake by 8% so whether that temporarily stops them from creeping further for some period of time or  not, I will leave trying to understand that for another day, (had a headache all morning and not looking to make it worse)..  I welcome anyone else having a go at opining on this.

[BlackPeter]

https://www.takeovers.govt.nz/guidance/guidance-notes/creeping

Creeping provisions are here.  I'm not going to try and untangle that today as to whether they are precluded from creeping for a period of time or not.  Obviously they've just increased their stake by 8% so whether that temporarily stops them from creeping further for some period of time or  not, I will leave trying to understand that for another day, (had a headache all morning and not looking to make it worse)..  I welcome anyone else having a go at opining on this.

Sorry to hear about your headache ...  get out and have a good walk - this might help in this amazing weather (I understand the sun is laughing all over our three islands ;

Not a takeover specialist by any means, but just looking into the guidance notes from the takeover panel, you well might have a point:

...
A holder or controller of between 50% and 90% of the voting rights in a Code company can increase its control percentage by "creeping" under rule 7(e) of the Code.
...
Accordingly, this rule allows a person to increase their holding by no more than 5% of the Code company's total voting rights in a 12-month period. The increase is to be calculated by reference to the lowest holding during the last 12 months.
The effect is that a person cannot take advantage of rule 7(e) if their control percentage has already increased by 5% or more from its lowest point over the last year, regardless of how that increase in control percentage came about.
For example, if a shareholder's control percentage of a Code company went from 0% to 75% by a shareholder-approved allotment made on 31 March 2013, that shareholder is not able to increase its control percentage again until after 31 March 2014 (unless it made a Code offer or obtained shareholder approval). The shareholder could then move up to 80%.
...

(Highlight by me)
Source:
https://www.takeovers.govt.nz/guidance/guidance-notes/creeping

So, looks like they will need to wait 12 months from the 8th of May 2025 (or probably 12th of May?) before they can start creeping.

Creepy, isn't it?

[Basil]

Thanks BP, that's how I and two others I have been talking to about this see it too...or they could make a another takeover attempt on any date after 22 January 2026.