Comprehensive M&A data with integrated detailed company information
CDL tables final offer for M&C
Posted on Monday, 10 June 2019 11:44
Singapore’s City Developments Limited (CDL), via Agapier Investments, has agreed to acquire the remaining stake in UK-based Millennium & Copthorne Hotels (M&C) that values the entire issued share capital of the hotel chain at GBP 2.23 billion.
The buyer first tabled a bid to take over the rest of the target for GBP 702.09 million in 2017; however, the board deemed the offer to be too low and rejected the proposal.
CDL will now pay GBP 6.85 per item of stock held in M&C, representing a premium of 37.0 per cent to the group’s close of GBP 5.00 on 6th June 2019, the last trading day prior to the announcement.
The buyer already controls 65.2 per cent of the hotel chain; it picked up 52.4 per cent for EUR 825.00 million in 2000 and continued to acquire minority stakes over the years to get to its final holding.
M&C’s directors, who have been advised by Credit Suisse, consider the terms of the new offer to be fair and reasonable and have therefore recommended the bid to shareholders.
The company, which has been listed in London since 1996, owns, leases and manages over 140 hotels in 26 countries worldwide.
In the three months ended 31st March 2019, M&C generated revenue of GBP 215.00 million, a 0.9 per cent decrease on GBP 217.00 million in the corresponding period of 2018.
Gross profit totalled GBP 113.00 million in Q1 2019, a slight decrease from GBP 116.00 million in Q1 2018.
CDL is billed as a leading global real estate operating company headquartered in Singapore with 103 locations in 29 countries and regions.
It has developed over 43,000 homes and owns over 18.00 million square feet of lettable office, retail and hotel space.
CDL posted revenue of SGD 4.20 billion (GBP 2.42 billion) and net profit before tax of SGD 875.50 million, with a net asset value of SGD 10.10 billion in the year ended 31st December 2018.
© Zephus Ltd