SINGAPORE (Jan 28): City Developments has failed in its takeover bid of Millennium and Copthorne Hotels (M&C Hotels). This comes after CDL and parties in concert failed to secure valid acceptances representing more than 50% of shares not already owned them, at the final closing date of the final offer.

As at 1pm on Jan 26, the CDL parties received a total of 53.3 million shares, representing 47.14% of the shares not already owned by them. CDL had earlier extended its final offer deadline from Jan 23, to Jan 26, after securing 44.21%.

CDL says, "The board of CDL respects the decision of the offeree shareholders. CDL remains committed to maintaining its controlling shareholding in the offeree, supporting the offeree’s strategy as a hotel owner and operator and the extensive capital expenditure program required to improve performance."

As at the close of Jan 25, CDL and its parties hold 211.7 million shares out of 324.8 million issued shares in M&C Hotel, representing a 65.2% stake. This comprises Singapura Developments which owns 170.6 million shares and Reach Across International which owns 41.1 million.

Under the Dec 8 terms of the final offer, shareholders were entitled to receive a cash amount of 600 pence per share, plus a special dividend of 20 pence. This was a revision from the first offer of 545 pence in cash, plus a special dividend of 7.5 pence.

Shares in London-listed M&C Hotels closed 27 pence lower at 546 pence on Friday.

This article, written by PC Lee, first appeared on The Edge Singapore.