Millennium & Copthorne rockets after takeover price agreed

Millennium & Copthorne Hotels shares booked a sharp gain on Monday morning after its Singapore-based parent company proposed a full cash buyout of its London-listed subsidiary.

After talks with M&C management, property giant City Developments, which indirectly owns 65% of M&C as both are members of Singapore billionaire Kwek Leng Beng's Hong Leong group, said a cash offer of 552.5p per share had been agreed, which would value the hotel business at roughly £1.79bn.

The proposed offer would be made up of a cash amount of 545p per share plus a special dividend of 7.5p a share payable to all M&C shareholders upon the offer becoming unconditional.

CDL said that it would maintain M&C's current business as a hotel owner and operator, with no intention to sell or repurpose any of M&C's hotels in London or in New York.

CDL said there can be no certainty that a formal offer will be made.