City Developments offers to buy London-listed M&C for $2.35 bln

City Developments Agrees GBP1.8 Billion Offer for Millennium & Copthorne

City Developments Agrees GBP1.8 Billion Offer for Millennium & Copthorne

In a second major deal within a week, Singapore's City Developments Limited (CDL) has offered to buy the remaining shares of Millennium & Copthorne (M&C) Hotels it did not already own.

CDL indirectly owns about 65.2 per cent of M&C. The proposed cash consideration comprise of a cash amount of 545 pence per M&C share and a special dividend of 7.5 pence per share which will be payable upon the offer becoming unconditional. It added that the company has no intention in selling or repurposing any of Millennium's hotels in London or in NY.

Singapore's Kwek Leng Beng, chairman of Hong Leong Group, established Millennium & Copthorne following the acquisition of Copthorne Hotels from Aer Lingus. The offer is a premium of 21.4 percent over M&C's closing share price on Friday of last week.

CDL has planned to maintain M&C's business model and become the owner and operator of its properties.

The company's independent directors, excluding CDL's nominees, have indicated they would recommend the offer, which was evalued as "fair and reasonable" by independent financial adviser Credit Suisse. After the offer was announced shares in M&C jumped to 553 pence. But he highlights that there is no certainty a formal will offer will be made, and that talks on the other terms and conditions of the offer are still ongoing. The company's shares were originally sold at £6.49, up 0.34 percent before halt on selling the shares on Monday, Oct. 9, 2017.

M&C Group operates hotels in the UK, Europe, the US, Asia and the Middle East.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.