Hong Kong-headquartered conglomerate Jardine Matheson Holdings has agreed to acquire the remaining 11.96% stake that it does not already own in Mandarin Oriental.
The company is offering $3.35 for each Mandarin Oriental share, including $2.75 in cash and a special dividend of $0.60 per share in cash (OCB dividend).
On 17 October, Mandarin Oriental also entered an agreement with Alibaba Group and Ant Group.
Under this agreement, Alibaba and Ant will acquire the top 13 floors of One Causeway Bay mixed-use property in Hong Kong for use as their headquarters, along with the building's rooftop signage and 50 parking spaces, for a total consideration of $925m the (OCB sale).
In a statement, Jardine said the transaction assigns an approximate value of $4.2bn to the entire issued ordinary share capital of Mandarin Oriental, before payment of the OCB dividend.
The acquisition of Mandarin Oriental by Jardine Matheson will be carried out through a scheme of arrangement under section 99 of the Bermuda Companies Act.
Jardine Matheson has been the controlling shareholder of Mandarin Oriental, holding 88.04% of the company as of the last business day before this announcement, through its wholly owned subsidiary.
The acquisition follows Jardine Matheson's strategy regarding its portfolio of businesses in Asia and its approach to capital allocation across the group.
Mandarin Oriental currently manages 43 hotels, 26 luxury homes, and 12 residences across 27 countries and territories, including locations such as Hong Kong and New York.
Established 193 years ago, Jardine Matheson has business interests in property, retail, and automotive sectors. It plans to finance the acquisition using cash and committed facilities.
Once complete, Mandarin Oriental plans to request the Financial Conduct Authority, the London Stock Exchange, the Singapore Exchange, and the Bermuda Stock Exchange to remove its shares from their respective stock exchange listings.
According to LSEG data, Mandarin Oriental shares have increased by 37.9% so far this year while Jardine Matheson has risen by 49.2%.
The buyout is expected to close by 28 February 2026, subject to completion of the property sale anticipated by 31 December 2025.
