Deadline on Regal offer extended

Malaysian United Industries (MUI) has given shareholders of Regal Hotels an extra three weeks to consider its bid for the company.

The bid was made before Christmas by Khoo Kay Peng, chairman of MUI.

The bid of 19.5p per share valued the group at £75.7m. It was made by Khoo through London Vista, a subsidiary of MUI.

Shareholders were initially given until 8 January to either accept or reject the offer.

As it received acceptances representing only 3.7 million shares, which is just 1.3% of the total, more time was allowed for shareholders to make up their minds. Shareholders now have until 29 January, and London Vista may increase the price it is offering.

Some shareholders rejected the bid on 8 January, and Regal's independent directors have called on others to reject it as well.

Vista already has a 33% shareholding in Regal.