MCK - Millennium & Copthorne Hotels.

[macduffy]

Yes, valid reasons, percy, although I would think that the parent company - and its ultimate parent, the Hong Leong group - would be able to borrow more cheaply than MCK. Current borrowings from the parent are shown at 2.27%, admittedly for a relatively modest $5.8m.

[percy]

Yes, valid reasons, percy, although I would think that the parent company - and its ultimate parent, the Hong Leong group - would be able to borrow more cheaply than MCK. Current borrowings from the parent are shown at 2.27%, admittedly for a relatively modest $5.8m.

Yes the Hong Leong Group would most probably be able to borrow cheaper than MCK.
It would make it easier for them to borrow, showing their investment in "listed " companies rather than "unlisted" companies.
Much easier for lenders to gauge "real" values.

[macduffy]

The other point to bear in mind is that the Hong Leong Group controls "only" 65% of Millenium and Copthorne Hotels plc, the owner of the company that owns 75% of MCK! So a takeover of MCK wouldn't be a simple matter.