Millennium & Copthorne shares surge 20% on takeover offer
City Developments Limited now has until November 6 to make a firm takeover offer.
Shares in Millennium & Copthorne Hotels surged more than 20% after agreeing to a possible takeover offer from its majority owners that values the business at nearly £1.8 billion.
Singapore-based City Developments Limited, which currently owns 65.2% of the FTSE 250-listed firm, is hoping to buy all the outstanding ordinary shares in the group that the firm and its subsidiaries do not already own.
The real estate developer has put forward a cash offer of 552.5p per share, which represents a 21.4% premium on Millennium & Copthorne’s closing share price last Friday and values the firm at £1.79 billion.
The news sent the hotel group’s shares to the top of the FTSE 250, after rising 20.7% or 94.5p in morning trading to reach 549.5p.
City Developments – which shares a board link with its takeover target – said it would maintain the company’s current business model and assured it had no intention to sell or re-purpose any of its hotels in New York and London.
Millennium & Copthorne’s founder and chairman Kwek Leng Beng also serves as the executive chairman of its majority shareholder.
The hotels firm currently owns seven sites in the capital, according to its website, including the Chelsea Harbour Hotel and the eponymous Millennium hotels in Mayfair and Knightsbridge.
City Developments now has until November 6 to make a firm takeover offer for the group.