Peninsula Hotel owner checks in for expensive stay

Hongkong and Shanghai Hotels

19/01/2022 02:20

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Jennifer Hughes
    HONG KONG, Jan 19 (Reuters Breakingviews) - Hong Kong’s
Kadoorie family paid almost twice market rate to add 12% to its
controlling stake in the 156 year-old chain with luxury hotels
from Paris to Tokyo. With shares trading at a third of net asset
value, it suggests some post-pandemic tourism plays have yet to
be booked. 
    Full view will be published shortly.
    Follow @JennHughes13 https://twitter.com/JennHughes13 on
Twitter
    
    CONTEXT NEWS
    - Hongkong and Shanghai Hotels, operator of the five-star
Peninsula Hotel chain as well as Hong Kong’s famous Peak Tram,
said on Jan. 17 that its controlling shareholder, the Kadoorie
family, had increased its stake to 72.4% from 60% by buying the
shares of Seekers Partners at HK$12.80 apiece.
    - The price represented a 92% premium to the shares’
undisturbed price. No reason was given for the purchase or the
price.
    - The family said the deal was conditional on it obtaining a
waiver from regulators exempting it of any need to make a full
takeover offer. 
    - HSH shares jumped 20% to HK$7.95 on the news.

 (Editing by Pete Sweeney and Thomas Shum)
 ((For previous columns by the author, Reuters customers can
click on  HUGHES/ 
SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS https://bit.ly/BVsubscribe
 | jennifer.hughes@thomsonreuters.com; Reuters Messaging:
jennifer.hughes.thomsonreuters.com@reuters.net))