City Developments Extends Offer Period for Millennium & Copthorne Acquisition

By FeaturesDow Jones Newswires

Real estate development company City Developments Ltd. (CDEVY) is extending its offer period to buy Millennium & Copthorne Hotels PLC (MLC.LN) to Friday from Tuesday, as it attempts to secure the necessary outstanding shares to close the deal.

City Developments said it already owns 65% of the hotel company and had secured acceptance from shareholders representing 44% of the shares not yet in its possession.

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However, according to the term of the deal, City Developments needs to secure more than 50% of the outstanding shares to complete the transaction and therefore has extended the closing period for the offer.

On Dec. 14, a group of shareholders in Millennium & Copthorne said it wouldn't tender its shares to City Developments, blocking the development company from reaching the acceptance threshold of its takeover offer. The investors said the offer significantly undervalued the company.

The shareholders--comprising International Value Advisers LLC; MSD Partners LP and its affiliates, and Classic Fund Management AG--said they represented a total of 37% of the shares subject to the City Developments offer.

City Developments said its offer of 600 pence plus a 20 pence special dividend, represents a 36% premium to Millennium & Copthorne's closing price Oct. 6--the day before the offer--of 455 pence a share. City Developments also said the offer price is higher than the trading price of Millennium & Copthorne's shares at any point in the past 10 years.

Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com

(END) Dow Jones Newswires

January 23, 2018 14:00 ET (19:00 GMT)

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