City Developments Extends Offer Period for Millennium & Copthorne Acquisition
January 23 2018 - 2:15PM
Dow Jones News
By Carlo Martuscelli
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.
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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