CDL relaunches takeover bid for Millennium & Copthorne

Agapier Investments (Bidco), a subsidiary of City Developments (CDL), hopes to acquire all shares in Millennium & Copthorne Hotels (M&C) not already held by CDL for £2.23b.

CDL owns approximately 65.2% of M&C and intends to privatise the company. The offer represents 685p per share, an increase of 65p from CDL's previously failed offer, which lapsed in January 2018 because CDL did not satisfy the minimum acceptance condition of more than 50% of M&C's shares that it did not already own.

Minority shareholders including JNE Partners, MSD Capital, International Value Advisers, Classic Fund Management and BWM hold approximately 43.6% of the M&C shares and intend to recommend that M&C shareholders accept the offer.

Sherman Kwek, CDL's group chief executive, said: "Taking M&C private is in line with CDL's 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 & Copthorne Hotels owns and manages more than 130 hotels across four brands, 20 of which are in the UK, including the Chelsea Harbour hotel and the Bailey's hotel in London, and the Hard Days Night hotel in Liverpool. The group's Millennium Hotel London Mayfair is set to relaunch later this year as the Biltmore under Hilton's luxury LXR Hotels & Resorts brand, the first in Europe.

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Millennium & Copthorne shareholders reject CDL bid >>