City Developments (CDL)

[brattzz]

deja vu?

https://www.nytimes.com/1999/10/01/busin...sours.html

:O

[¯|_(ツ)_/¯]

CDL@661
1HFY2021 Result with 3 cents dividend
https://links.sgx.com/FileOpen/1H_2021_C...eID=678326

https://drive.google.com/open?id=1r-GFob...3qXQxg---6

Stay home and stay safe, everyone.

[weijian]

Wow~ Getting a straightforward rebut from the guys/girls whom you fed with your hand. These IDs have balls and didn't even wait for the IFA report to issue a formal response. They also rightly asked shareholders to "TAKE NO ACTION AND IGNORE THE OFFER DOCUMENTS" (bold and italics in their press release statement) as they will engage an IFA to evaluate the offer.

Maybe it is just the angmoh brashness? After all, we Asians are not wired to create such confrontational situations unless you have familial (eg. cousin) ties

CDL Kiwi unit’s NZ$2.25-per-share offer ‘too low and inadequate’: M&C New Zealand

THE offer by City Development Limited’s (CDL) wholly owned subsidiary to take Millennium & Copthorne Hotels New Zealand (MCK) private at NZS$2.25 per share is “too low and inadequate”.

In a bourse filing on Monday (Feb 10), MCK said: “The independent directors believe that the offer does not sufficiently reflect the value of MCK’s hotel and property net assets, and the benefits that MCK can expect as the hotel and property markets recover.”

Leslie Preston, chair of the independent directors committee, said: “We will provide shareholders with a target company statement within the next two weeks that will include more detail, but we are advising shareholders to take no action at this time.”

https://www.businesstimes.com.sg/compani...ew-zealand

-----------------------

There is no benefit or advantage to MCK shareholders in accepting CDLHH NZ’s Offer early and once given, your acceptance cannot be withdrawn. MCK shareholders who accept the Offer will not be paid unless and until the offer becomes unconditional. This could be several months from now, if ever.
Actual PR: https://mckhotels.co.nz/investors/wp-con...b-2025.pdf

[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

[Behappyalways]

Battle erupts between billionaire Kwek Leng Beng and son Sherman Kwek for control of CDL
https://www.straitstimes.com/business/ba...rol-of-cdl

[EnSabahNur]

Wow~ Getting a straightforward rebut from the guys/girls whom you fed with your hand. 

What do you mean "fed with your hand"?

[specuvestor]

Battle erupts between billionaire Kwek Leng Beng and son Sherman Kwek for control of CDL
https://www.straitstimes.com/business/ba...rol-of-cdl

Think the father protected the son even with the Board disagreeing... what a twist... was groomed to takeover after being CEO of HK listed City e-Solutions

https://financialhorse.com/cdls-sincere-...ck-at-7-2/

[Big Toe]

Kwek Leng Peck(Uncle of Sherman) even had to resign over disagreement over Sherman's strategic direction. Says a lot about Sherman and how he handles business matters. And to think the father is competent but unwilling to be at the front line of the Hong Leong Empire in the beginning, the son with a proven track record of massive failure is more than eager to take over.

AI:
The saying "generational wealth doesn't last more than three generations" is a common belief, suggesting that wealth accumulated by the first generation tends to significantly diminish or disappear by the time it reaches the grandchildren (third generation), often due to factors like poor financial management, lack of entrepreneurial drive, and a sense of entitlement in later generations.

Reasons for decline:
Lack of work ethic: Subsequent generations may not have the same drive and work ethic as the original wealth creator, leading to poor financial decisions.
Inheritance mentality: Receiving wealth without having to work for it can lead to a lack of appreciation for its value and irresponsible spending.

[weijian]

Wow~ Getting a straightforward rebut from the guys/girls whom you fed with your hand. 

What do you mean "fed with your hand"?

hi EnSabahNur,

Independent directors are recommended by the BOD and then voted in by the shareholders. They are supposed to be independent from the Executive and the majority shareholder (if any) but gotten into their position because of the Executive and the majority shareholder (if any). Therefore, I was just taking a dig against this dichotomy.

[weijian]

In general, a company's affairs are settled at the board level. And if there are disagreements, it all comes down to the voting and therefore who has majority control. That is how elections work too. So when it goes to the court just as the saga starts to erupt, it is puzzling.

But the prodigal son has came out with a statement after Daddy, and so it make sense now. Daddy and co has been out-voted and has to appeal to the court asap, I suppose. Quite a different outcome compared to New World Development whom replaced their scion Adrian Chen with no frills attached.

In the coming days, there will be probably plenty of lessons for bystanders to learn about how this whole company "structure" really works.

CDL CEO Sherman Kwek disappointed by father’s ‘extreme actions’ against him after suits filed

“on behalf of the majority of the CDL board of directors”, Sherman Kwek said: “It is incredibly disappointing that our chairman and a minority of the City Developments Ltd board have decided to take these extreme actions regarding this disagreement around the size and make-up of the CDL board.”

“Our focus as CEO and directors, as a board majority and with clear guidance and support from our company and independent legal counsel, has always been to implement steps to improve governance.

Sherman Kwek said that CDL had suspended trading of its shares as “this issue now comes before the courts, despite this legal action not being authorised by the majority of the board”.

https://www.businesstimes.com.sg/compani...uits-filed