CDL bids for full control of Millennium & Copthorne Hotels
Millennium & Copthorne Hotels (M&C) has been valued at around £1.8b after the Singaporean majority stakeholder of the company made a bid for the reminder of the group's shares.
City Developments Limited (CDL), which currently owns 62.5% of M&C, has announced that it has reached agreement with the company regarding a cash offer for the business, valuing each share at 545p each.
It confirmed that it would maintain M&C's current business model in running the business as an owner and operator of the hotel portfolio and would not sell any of the group's hotels in London or New York.
M&C currently comprises 130 hotels in 17 countries. Its 21-strong UK portfolio includes Bailey's and Chelsea Harbour hotels in London and Hard Day's Night hotel in Liverpool, as well as properties operating under the two separate brands: Millennium and Copthorne.
The origins of M&C dates back to 1989 when Millennium Hotels and Resorts was founded by chairman Kwek Leng Beng, who heads the Hong Leong Group. CDL acquired Copthorne Hotels from Aer Lingus for £219m in 1995.
M&C floated on the London Stock Exchange in 1996. If the CDL deal goes through, it is expected that CDL would take M&C off the stock market as it becomes part of the Singapore-based company's operations.
Millennium & Copthorne's annual results negatively impacted by weak pound >>
Fall in sterling boosts Millennium & Copthorne revenue and profit >>
Uncertainty leads to decline in revpar at Millennium & Copthorne Hotels >>
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