City Developments rules out higher offer for Millennium & Copthorne
City Developments has warned investors standing in the way of the deal that the “final offer is final”.
City Developments has ruled out the prospect of upping its offer for Millennium & Copthorne Hotels (M&C) after shareholders opposed its takeover bid.
The Singapore-based firm warned investors standing in the way of the deal that the “final offer is final” and was an opportunity unlikely to be repeated again in the future.
The real estate developer, which owns 65.2% of M&C, had tabled an improved offer of 620p per share, which valued the group at £2.01 billion.
However, a group of shareholders representing around 37% of the total stock – including Classic Fund Management AG, International Value Advisers LLC and MSD Partners – wrote a letter to the M&C board, saying the approach significantly undervalued the company and was highly opportunistic.
City Developments chairman Kwek Leng Beng said: “This final offer represents a premium of 36.3% to the closing price of M&C shares of 455p on 6 October 2017 (the day before the offer period), which is a very substantial premium given CDL already owns 65.2% of M&C.
“This final offer is also higher than the price at which M&C shares have closed on any day in the 10 years prior to the possible offer announcement on 9 October 2017.”
He added: “This final offer is final and will not be increased and is an opportunity that is highly unlikely to be repeated again in the near future.”
The hotels firm currently owns seven sites in London, according to its website, including the Chelsea Harbour Hotel and the eponymous Millennium hotels in Mayfair and Knightsbridge.
Shares in M&C closed down 0.3% on the second tier of the London Stock Exchange.