Millennium & Copthorne Hotels rejected two previous offers before agreeing a deal with City Developments Limited (CDL), it was revealed today.
The London-listed hotel chain said earlier this month that it had agreed on a buyout offer which values the company at £1.8bn, sending the shares up 22 per cent.
Today more details of the proposed takeover were released, including the revelation that Millennium & Copthorne's independent directors rejected a 510p per share offer from CDL and another revised offer before settling on the current 545p per share terms. Shares in the company closed at 570p today.
CDL now has until Monday 6 November to make a firm offer. The firm already owns 62.5 per cent of the hotel company, but has agreed to conditions in its offer such as retaining hotels in London and New York, while focusing on an asset-owned model.
However some minority shareholders have voiced opposition to the takeover. Around 20 per cent of shareholders in the company have claimed that the offer undervalues the company and has been recommended by M&C’s independent directors without first undertaking a valuation of the hotels, City A.M. understands.
M&C has more than 130 hotels spread across 17 different countries. Its six London sites include luxury hotels in Kensington, Mayfair, and Chelsea.
A total buyout by CDL will likely take M&C off the stock market as it becomes part of Singapore-listed CDL's operations.