17th Oct 2025 12:02
(Alliance News) - Jardine Matheson Holdings Ltd on Friday said it will buy the remaining 12% of Mandarin Oriental International Ltd it does not already own, valuing the luxury hotel operator at USD4.2 billion in total.
In parallel, Mandarin Oriental has agreed to sell part of its Hong Kong headquarters for USD925 million to Chinese online retailer Alibaba Group Holdings Ltd and its fintech-focused subsidiary Ant Group Ltd.
Jardine is a Hong Kong-based holding company with interests in retail, property, hotels and motor dealerships. It is already Mandarin Oriental's majority owner, but now has agreed to acquire the remaining 11.96% of the company it does not already hold, through its wholly-owned vehicle Jardine Strategic Ltd.
The offer is for USD2.75 in cash, valuing Mandarin Oriental at USD4.2 billion in total, plus a special dividend of 60 US cents per share, bringing the total price per share to USD3.35.
The combined total comes at a premium of 52% to Mandarin Oriental's closing price of USD2.20 on September 29, the day before the hotel operator announced it was considering the sale of its headquarters.
Mandarin Oriental will sell the top thirteen floors of One Causeway Bay, plus roofing signage and parking spaces, to Alibaba and Ant for USD925 million. Mandarin Oriental has agreed to contribute USD37 million to property enhancements.
The sale is for a total of 301,555 square feet, representing around 36% of Mandarin Oriental's fixed tangible assets and investment properties, based on carrying value at June 30.
The luxury hotel firm holds interest in the property through its subsidiary, One Causeway Bay Ltd. Following the sale, it will still own 286,984 square feet of office space and 82,550 square feet of retail space at the site.
A portion of the proceeds will be used to repay construction debt and fund further building costs. The remaining USD758 million proceeds will be distributed to shareholders via special dividend, Mandarin Oriental said.
The property sale is expected to close on December 31, with proceeds received the same day.
Mandarin Oriental's acquisition by Jardine Matheson is expected to come into effect by the end of February.
Jardine Matheson shares closed 0.8% higher at SGD61.13 on Friday in Singapore. Alibaba closed down 4.2% to HKD154.40 in Hong Kong. Its American depositary receipts were trading 3.2% lower at USD159.80 pre-market dealings in New York. Each ADR represents eight shares.
By Holly Munks, Alliance News reporter
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