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CDL gets one-month extension to firm up offer for M&C
PROPERTY stalwart City Developments Ltd's deadline to make a firm offer for London-listed subsidiary Millennium & Copthorne Hotels (M&C) has been extended until Dec 8 from Nov 6.
In other words, it has another month to decide if it intends to or not make a firm offer for M&C.
This follows an explanation to M&C's independent non-executive directors by CDL and its unit Agapier Investments (Bidco) that they are not willing to announce a firm intention without further clarity on the timing and likely outcome of the approval by the New Zealand Overseas Investment Office (OIO) due to the potential legal implications on them if they were to proceed without the consent.
The proposed cash offer by CDL that was announced last month is subject to certain conditions, including getting the consent from OIO.
CDL said that it has filed an application for consent with the OIO, and it, together with Bidco, are continuing to work with the regulator on the matter.
CDL has explained to the independent committee of M&C that a period until Dec 8 would provide sufficient time to gain clarity.
In an announcement by M&C to the London Stock Exchange that was also released by CDL on the Singapore Exchange on Friday, it was announced that the independent committee was of the view that the extension of the deadline would preserve the opportunity of shareholders to receive and consider a formal offer if one is made.