Will minority owners of M&C bite?
At an enterprise value of 12 times its Ebitda, it's trading at an attractive level compared to global hospitality plays, says DBS analyst Rachel Tan
SINGAPORE property tycoon Kwek Leng Beng has finally put to rest years of market speculation over whether City Developments (CDL), the majority owner of Millennium & Copthorne (M&C), will seek to privatise the London-listed hotel chain.
On Monday, CDL - the Singapore-listed flagship of Mr Kwek's Hong Leong Group - said it planned to buy the remaining 34.8 per cent stake in M&C for £624.3 million (S$1.1 billion), valuing the hotel group at £1.8 billion.
Minority shareholders of M&C will get 552.5 pence in cash for each share. This will be made up of 545 pence in cash, and a special dividend of 7.5 pence per share when the offer becomes wholly unconditional.
News of the informal offer pushed the share price of M&C to more than a two-year high at 575 pence each. As for CDL, the share price has climbed steadily from S$11.75 per share to around S$12.…
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