Mandarin Oriental (MAND SP): Matheson's Full Offer

• A sale - partial or otherwise - of Mandarin Oriental International (MAND SP)‘s One Causeway Bay (OCB) was always on the cards. But I didn’t see an Offer coming.

• Concurrent with the sale of 13 floors of OCB to Alibaba (9988 HK), Jardine Matheson (JM SP) is seeking to take out MAND’s minorities at US$3.35/share by way of a Scheme.

• That’s a 52.3% premium to undisturbed, and a 53.7% premium to NAV. Unlike the 2021 Jardine Strategic (JS SP) Offer, Matheson is required to abstain from voting on this takeover.

MAND is illiquid. Look away now if this is not your thing.

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The Trade:

• Clean, full Offer.

• I can see this trading around US$3.15-US$3.20 at the open, assuming late Feb 2026 payment.

• It may well trade tighter if viewed as a “dull, funding trade”. Irrespective of the fact Matheson is abstaining from voting.