Advertisement
Singapore markets closed
  • Straits Times Index

    3,224.01
    -27.70 (-0.85%)
     
  • S&P 500

    5,248.49
    +44.91 (+0.86%)
     
  • Dow

    39,760.08
    +477.75 (+1.22%)
     
  • Nasdaq

    16,399.52
    +83.82 (+0.51%)
     
  • Bitcoin USD

    70,608.08
    +746.60 (+1.07%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,968.25
    +36.27 (+0.46%)
     
  • Gold

    2,216.70
    +4.00 (+0.18%)
     
  • Crude Oil

    81.74
    +0.39 (+0.48%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • Nikkei

    40,168.07
    -594.66 (-1.46%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • FTSE Bursa Malaysia

    1,530.60
    -7.82 (-0.51%)
     
  • Jakarta Composite Index

    7,288.81
    -21.28 (-0.29%)
     
  • PSE Index

    6,903.53
    +5.36 (+0.08%)
     

CityDev launches another takeover bid for Millennium & Copthorne Hotels with 685 pence per share offer

UPDATED: City Developments (CDL) has launched another takeover bid for Millennium & Copthorne Hotels (M&C).

The latest move comes after CDL built up a 65.2% stake in M&C.

CDL says the offer price will remain at the pre-conditional final cash offer price of 685 pence ($11.89) per share offer for the remaining 34.8% of M&C not already owned by CDL.

The offer price is final and will not be increased, and values the entire issued and to be issued ordinary share capital of M&C at £2.23 billion ($3.86 billion).


The Biltmore, a five-star luxury hotel at Grosvenor Square in Mayfair, London (Credit: CDL)

The latest offer is also at a 37% premium to M&C’s closing price of 500 pence based on the closing middle market price of an M&C share on June 6.

ADVERTISEMENT

This time round, key minority shareholders -- JNE Partners LLP, MSD Capital, L.P., International Value Advisers, LLC, Classic Fund Management AG and BWM AG -- who hold a total of 49.3 million shares or a 43.6% stake that CDL doesn't already own, gave their irrevocable undertakings to accept the final offer.

M&C’s independent directors, who have been advised by Credit Suisse, consider that the terms of the final offer are fair and reasonable, and intend unanimously to recommend that M&C shareholders accept the final offer.


Millennium Biltmore Hotel, Los Angeles (Credit: CDL)

CDL says the maximum cash consideration payable amounts to £776.29 million ($1.34 billion) which will be funded through a combination of internal cash resources as well as funds made available to CDL under a credit facility.

M&C’s independent directors, who have been advised by Credit Suisse, consider that the terms of the final offer are fair and reasonable, and intend unanimously to recommend that M&C shareholders accept the final offer.

CDL says it has been a highly supportive shareholder since M&C’s initial public offering on the London Stock Exchange in 1996.


Millennium Broadway New York, Times Square (Credit: CDL)

However, CDL says M&C faces a number of challenges and a highly competitive landscape and would require significant and targeted capital investment to reposition assets as part of its long-term strategy.

Sherman Kwek, CDL’s Group Chief Executive Officer, says, “Taking M&C private is in line with CDL’s strong focus on boosting recurring income and enhancing underperforming assets. We are pleased to have garnered the support of M&C’s independent directors and key minority shareholders. The offer enables shareholders to exit an illiquid stock at a significant premium. We believe that a privatised M&C will be in the best position to navigate the increasingly challenging and competitive global hospitality landscape with agility and nimbleness. M&C will be able to leverage CDL’s significant resources, comprehensive real estate capabilities and global network to reposition its assets and drive sustainable hotel performance.”

See Also: