Millennium & Copthorne Hotels shares soar as takeover bid agreed
The offer values the entire business at £2.23 billion.
Hotel group Millennium & Copthorne (M&C) has agreed a deal to be acquired by its majority owner, putting an end to a long-running dispute over the company’s ownership.
Shares in the FTSE 250 firm soared by 36% on Friday afternoon after it announced a deal with Singapore-based City Developments Limited (CDL).
CDL, which already owns 65.2% of the hotel operator, will pay 685p per share for the remaining holdings.
The price represents a 37% premium on Thursday’s closing price of 500p and values the entire company at £2.23 billion.
Irrevocable undertakings to accept the offer have already been pledged by a number of shareholders, who between them hold 43.58% of the M&C shares not already owned by CDL.
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 CDL group chief executive Sherman Kwek
Last year, minority shareholders in the firm rejected a previous advance from CDL, which had offered to pay 620p per share.
The deal must receive backing from investors with holdings equivalent to at least 50% of shares not owned by CDL.
If it is successful, the acquisition will take the company off the London Stock Exchange.
Sherman Kwek, group chief executive of CDL, said: “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.”
M&C operates 140 hotels in more than 26 countries, including London’s Millennium Gloucester Hotel and New York’s Millennium Broadway.