CDL sends out M&C Hotels buyout offer documents; First close date is set at Jan 23

By PC Lee / The Edge Singapore | December 21, 2017 11:00 PM SGT
SINGAPORE (Dec 21): City Developments (CDL) has sent out the offer documents for the buyout of Millennium & Copthorne (M&C) Hotels to the latter's shareholders.
The first close date for the transaction is Jan 23, 2018.
CDL is making a final cash offer of 620 pence ($11.20) each for the 34.8% stake in London-listed hotelier it does not already own.
The property group will need approval from at least 50% of M&C's remaining shareholders to close the deal.
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International Value Advisers, MSD Partners and Classic Fund Management, which together hold 37% of the voting shares in M&C, have said they will reject the offer.
Since announcing the buyout on Oct 9 with an initial offer of 552.5 pence, M&C's smaller shareholders had argued that CDL had put too low a price on the business which did not reflect the value of its extensive property portfolio.
On Dec 9, the buyout offer price was raised by 12.2% to the current one.
In an open letter to M&C shareholders on Dec 18, Kwek Leng Beng, executive chairman of CDL and chairman of M&C, says the final offer is "final" and will not be further revised.
Shares in CDL and M&C Hotels last traded at $12.27 and 583.25 pence.
This article by PC Lee first appeared on TheEdgeSingapore.com