Regal agrees to new offer
Regal Hotel Group has finally accepted a takeover bid from its biggest shareholder, Malayan United Industries (MUI).
Regal's independent directors have reached agreement on a recommended offer of £88.5m from London Vista, an MUI subsidiary through which the bid was launched.
Last year, Regal's directors recommended that shareholders reject a lower offer from London Vista that valued the group at £75.7m. That offer was suspended in January, pending investigation by the takeovers and mergers panel.
London Vista said it had made the bid because it saw scope for expanding Regal's business both in the UK and overseas. It also felt there were benefits to be gained from linking Regal with some of the hotel and leisure interests controlled by its Malaysian parent company.
It added that the existing employment rights, including pension rights, of Regal employees would be fully safeguarded.
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