City Developments settles on cash takeover offer valuing Millennium & Copthorne at £1.8bn

Alys Key
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The Millennium Hotel in Mayfair is one of the group's London sites (Source: Getty)

One of the largest hotel owners and operators in the world could be bought out by its majority owner in a deal valuing the chain at £1.8bn.

Millennium & Copthorne Hotels is currently 62.5 per cent owned by Singapore-listed City Developments (CDL).

This morning CDL announced its board had come to an agreement with the hotel chain's independent non-executive directors over a possible cash offer for the remaining shares, which values the company at just under £1.8bn.

Read more: London's hotel boom will continue into 2018

Shares in M&C rose 22.5 per cent today to 557.5p.

The proposed cash offer would value each share at 545p each.

CDL confirmed today it will maintain M&C's current business model, and committed to not selling off any hotels in London or New York.

M&C has more than 130 hotels spread across 17 different countries. Its six London sites include luxury hotels in Kensington, Mayfair, and at Chelsea Football Club.

The London-listed company benefited from the weaker pound as spending rose at its UK hotels this year.

A total buyout by CDL will likely take M&C off the stock market as it becomes part of Singapore-listed CDL's operations.

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