In a sweeping display of financial might, Jardine Matheson Holdings Ltd. announced Friday that it will acquire the remaining 11.96% of Mandarin Oriental International Ltd. shares it doesn’t already own — a move that values the luxury hotel chain at roughly $4.2 billion and will take it private.
Under the deal, Jardine Matheson will offer $3.35 per share in cash, split between a $2.75 offer price and a 60-cent special dividend, according to a joint statement from both companies. The dividend stems from Mandarin Oriental’s separate agreement to sell the top 13 floors of its One Causeway Bay property to Alibaba Group and Ant Group for $925 million — a sale that lubricates the path to privatization.
A Luxury Legacy Reshaped
The purchase values the minority stake at about $500 million, cementing Jardine Matheson’s control over one of the world’s most prestigious hotel brands. The conglomerate plans to execute the deal through a Bermuda law scheme of arrangement, financed by its existing cash and credit facilities.
Jardine Matheson made clear there will be no last-minute sweetening:
“The financial terms of the acquisition are final and will not be improved,” the company said.
