City Developments Ltd. (C09.SG) said Monday that it has agreed to buy the remaining shares in Millennium & Copthorne Hotels PLC (MLC.LN) that it doesn't own, in a deal that values the entire company at 1.8 billion pound ($2.4 billion).
The Singapore-listed real-estate company, which currently owns 65.2% of M&C, is offering 552.5 pence for each of the remaining shares in the hotel company. The price is a 21% premium to Millennium's closing share price of 455 pence on Friday.
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Of the offer price, 545 pence is payable in cash by City Developments' subsidiary Agapier Investments Ltd. and the rest will come via a special dividend which will be paid once the offer goes unconditional.
City Developments said it intends to maintain Millennium's current business model, in particular to run the business as an owner and operator of its hotel portfolio. It added that the company has no intention in selling or repurposing any of Millennium's hotels in London or in New York.
"Discussions on the other terms and conditions of the proposed offer, including which regulatory clearances the parties will be required to seek and obtain in relation to any offer, are ongoing between CDL and the M&C Independent Directors," it said.
City Developments has until 1700 GMT on Nov. 6 to either make a firm offer or withdraw.
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(END) Dow Jones Newswires
October 09, 2017 02:49 ET (06:49 GMT)