According to Reuters, Hong Kong-based conglomerate Jardine Matheson is set to buy the rest of the Mandarin Oriental shares it does not already own, valuing the hotel investment and management firm at $4.2 billion, delisting it from the Singapore stock exchange.
Bidco, a subsidiary of Jardine Matheson, will acquire the outstanding 11.96 percent of Mandarin Oriental shares. The transaction will be financed through cash and committed facilities.
In a statement, the company said that full ownership of Mandarin Oriental will allow it to better support the hotel group's growth and streamline its portfolio.
The privatization of Mandarin Oriental is in line with Jardine Matheson’s capital allocation framework, the Business Times reported.
Jardine Matheson expects the transaction to close by Feb. 28 next year. If the deal does not proceed, the conglomerate plans to continue pursuing the company’s delisting by other means.
Mandarin Oriental operates 43 hotels, 12 residences and 26 homes across 27 countries and territories, from Hong Kong to New York.