Millennium spends $14.25m on final stake in Quantum
Millennium & Copthorne Hotels New Zealand [NZX: MCK], which operates 22 hotels across the country, will spend $14.25 million in cash to buy the remaining 30 percent stake in its Quantum joint venture that it doesn't own from Te Maori Lodges.
Quantum, which owns and leases seven hotels across the country including Millennium Hotel Queenstown, Rotorua's Copthorne Hotel and the Kingsgate Hotel in Dunedin, is the Auckland-based hotel chain's main subsidiary in New Zealand. The buyout of the remaining the remaining third will end a 21-year relationship with Te Maori Lodges, a subsidiary of the Maori Trustee.
"The Maori Trustee has been a valued business partner with MCK (Millennium) for over twenty years," Millennium said in a statement. "We understand that their interests now lie in fields outside tourism and hospitality and we wish them well in their future business endeavours."
The Maori Trustee leads Te Tumu Paeroa, an independent organisation established from government legislation which administers 100,000 hectares of Māori owned land on behalf of nearly 100,000 owners, according to its website.
The purchase is conditional on Overseas Investment Office approval.
Millennium's shares were unchanged at 68 cents, and have dropped 4.2 percent this year.