Published: Wed, October 11, 2017
Worldwide | By Gretchen Simon

CDL unveils offer for Millennium & Copthorne

CDL unveils offer for Millennium & Copthorne

Millennium & Copthorne Hotels is now 62.5 per cent owned by Singapore-listed City Developments Limited (CDL).

This would value the entire Millennium & Copthorne (M&C) business at £1.8 bn (€2 bn). CDL now owns about 65.2 per cent of M&C.

The proposed offer would be made up of a cash amount of 545 pence per M&C share, together with a special dividend of 7.5 pence per share payable to all M&C shareholders upon the offer becoming unconditional.

Meanwhile, Lim & Tan Securities' research team is also keeping its long-held "buy" recommendation on CDL, noting that its offer price is at a 33-34% discount to M&C's last reported net asset value (NAV) of 821.5 pence.

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"Discussions on the other terms and conditions of the proposed offer, including which regulatory clearances the parties will be required to seek and obtain in relation to any offer, are ongoing between CDL and the M&C Independent Directors", it said. The company's shares were originally sold at £6.49, up 0.34 percent before halt on selling the shares on Monday, Oct. 9, 2017. According to the directors of M&C, the terms of the bid are fair and reasonable.

M&C, which operates the Millennium, Grand Millennium, Copthorne and Kingsgate brands, has a portfolio of over 130 hotels in 17 countries around the world, from the Millennium Biltmore Los Angeles to the Grand Millennium Beijing.

CDL confirmed today that it would maintain M&C's current business model, and committed to not selling off any hotels in London or NY. The hotelier has focussed on expansion in gateway cities including New York, London and Singapore - it now has six properties in the island city - as well as Greater China where it runs 11 hotels.

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