City Developments (CDL) announced on Oct 9 that it intends to offer Millennium & Copthorne Hotels (M&C)’s shareholders 552.5 pence in cash for each of the remaining shares that it does not own. As at Oct 9, CDL owns 65.204% of M&C. The offer values the entire issued ordinary share capital of M&C at about £1.79 billion ($3.21 billion).

According to CDL, the plan for M&C is to maintain is current business model as owner and operator of its hotel portfolio. CDL also says that it has no intention to sell or repurpose any of M&C’s hotels in New York or in London.

Discussion on terms and conditions of the proposed offer are ongoing between CDL and the independent directors of M&C. CDL stresses that there is no certainty that a formal offer will be made.

Source: Millennium & Copthorne Hotels