Singapore's City Developments to buy Millennium & Copthorne for ?2.23bn

7th Jun 2019 17:39

(Sharecast News) - Shares in Millennium & Copthorne rocketed on Friday after it agreed to be bought by Singapore-listed real estate company City Developments (CDL) for £2.23bn.City Developments has offered 685p a share in cash for the remaining 43.58% of the hotel chain that it does not already own, which represents a premium of around 37% to the closing price on 6 June. In addition, it's 65p higher than the offer it made back in December 2017, which failed to secure the required acceptances.M&C's independent directors said the offer was "fair and reasonable" and they intend to unanimously recommend that shareholders accept it.Once the deal has completed, City Developments said it plans to de-list Millennium & Copthorne from the London Stock Exchange.CDL's chief executive, Sherman Kwek, said that taking M&C private is in line with its "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."Millennium's independent directors said "the offer provides M&C independent shareholders with the ability to realise their investments in cash at a valuation which has not been seen since 2007".M&C shares closed up 36% at 680p.