By GEOFF SENESCALL
The go-ahead for the $1.7 billion restructuring of the hotel interests of Singapore's Hong Leong Group is fuelling speculation that it might be looking to tidy up its NZ assets.
Nearly seven million shares have traded in the past week as several investors have quietly taken positions in CDL
Hotels New Zealand, this country's largest hotel group, in anticipation of such a move.
The Singaporean majority shareholder (70 per cent) has already taken over the reins of the company after the resignation last month of CDL's managing director, Lex Henry.
It is mindful that CDL shares are trading at 22c when its net asset backing is around 60c.
However, CDL's chief financial officer, Anthony Lee, played down talk about a potential takeover of the local company, whose assets include the Millennium, Copthorne and Quality Hotels as well as stakes in Kingsgate International and CDL Investments. "I am not aware that anything is going on. I don't think that is the intention."
But Mr Lee also said that Hong Leong was very dynamic and was always making purchases.
Hong Leong's latest move has seen its Singapore-listed subsidiary City Developments acquire Hong Kong-based CDL Hotels International with the aim of turning it into an internet investment company, focusing on the hotel sector.
The shares in CDL Hotels International, whose major asset is a 52 per cent shareholding in London-listed hotel operator Millennium & Copthorne, had been trading at around half their asset backing before the takeover.
With shareholders giving the go-ahead on Wednesday in Hong Kong for the purchase, City Developments now has a direct 52 per cent holding in Millennium & Copthorne.
In an asset rejig last year, CDL New Zealand was sold Millennium by CDL Hotels International.
CDL New Zealand is expected to release its half-year result next week.
