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Hong Leong’s CDL lodges offer for M&C
Posted on Monday, 09 October 2017 10:07
Millennium & Copthorne (M&C) Hotels was the top riser on the FTSE All-Share index by 08:36 today after the Singaporean majority owner tabled a takeover offer that values the entire global UK-listed hotelier at GBP 1.79 billion.
As it is, the 552.50 pence apiece proposal by the overseas property giant City Developments (CDL) puts a price tag of GBP 624.33 million on the remaining 34.8 per cent stake not already held.
The majority owner, a member of the Hong Leong group of companies, has decided to use unit Agapier Investments to carry out the acquisition which is set at a premium of 21.4 per cent to the last business day of 6th October.
Its proposal has already curried favour with a committee of independent directors after confirming it has no intentions of sell any of M&C’s properties in London or New York.
Furthermore, CDL also stated it wants to maintain the hotelier’s current business model, in particular to continue as the owner and operator of its portfolio.
The suitor has until 6th November to announce a firm intention to, or decline to make, an official offer, which would bring the UK group back under the conglomerate of Singaporean billionaire Kwek Leng Beng.
According to Zephyr, the M&A database published by Bureau van Dijk, this could be the 11th largest public takeover of a UK company so far this year, if a formal deal goes ahead, that is.
M&C was officially formed in 1995 when CDL acquired Copthorne Hotels from Aer Lingus for GBP 219.00 million, which was followed by listing in London a year later according to the website.
Today, the company is touted as being the largest hotel owner in Singapore and one of the biggest Asian-controlled players outside China.
It has several flagship brands, such as Grand Millennium and Kingsgate, which can be found in 20 countries across the world, including gateway cities like Bangkok, Dubai and Chicago.
M&C had group revenue per available room of GBP 78.69 million in the six months to 30th June 2017, (H1 2016: GBP 75.04 million), despite its operations in New York and Asia continuing to lag behind those in Europe and Australasia.
© Zephus Ltd