CDL sends out offer documents for M&C Hotels buyout; first close date is Jan 23, 2018

CITY Developments (CDL) on Thursday made a final cash offer of 620 pence (S$11.20) a share for the shares in London-listed Millennium & Copthorne Hotels (M&C) that it does not already own.

The first closing date of the offer for M&C shareholders is Jan 23, 2018.

CDL owns 65.2 per cent of M&C, and will need approval from 50 per cent of M&C's remaining shareholders in order to close the deal.

There is a chance that the deal will fall through. International Value Advisers, MSD Partners and Classic Fund Management, which together account for 37 per cent of the shares that will vote on the offer, have said they will reject the offer. (see amendment note)

Since a possible buyout was first proposed in October, these minority shareholders have criticised CDL for the "low-ball" offer which they said undervalues M&C's hotel assets.

CDL later raised its offer price from 552.5 pence a share to 620 pence a share, but has refused to budge further.

"This final offer is final," said Kwek Leng Beng, who is the executive chairman of CDL and chairman of M&C, on Dec 18.

Amendment: An earlier version of this story stated that International Value Advisers, MSD Partners and Classic Fund Management, together account for 37 per cent of the voting shares in M&C. It should be 37 per cent of the shares that will vote on the offer. The article has been revised to reflect this.