CityDev's Q2 earnings dip; group has been raising M&C stake

Increased holding in London-listed hotel arm a pragmatic move to lift group's profit, says chairman

Kalpana Rashiwala

Published Thu, Aug 13, 2015 · 09:50 PM

Singapore

CITY Developments Ltd (CDL), which on Thursday posted a 3.2 per cent year-on-year drop in second-quarter net profit to S$133.5 million, has been raising its stake in its London-listed hotel arm Millennium & Copthorne Hotels with an eye to consolidating more of the latter's profit.

CDL's stake in M&C has risen from about 53 per cent at end-2005 to 63 per cent at end-June 2015.

"When we have the opportunity, we will increase our stake," CDL executive chairman Kwek Leng Beng told analysts and members of the media on Thursday.

"I am hoping that after significant renovations (of the hotels) from here, there, everywhere, my profit can increase. But in the initial peri…