City Developments and Millennium & Copthorne Hotels agree increased offer

Dow Jones - City Developments has said that it and Millennium & Copthorne Hotels have agreed an increased offer for M&C that values it at £2.01bn ($2.69bn), a 12% increase over the previous offer.

The Singapore-listed company, which currently owns 65.2% of M&C, is now offering 600 pence in cash for each share held, plus a special dividend of 20 pence once the offer has been declared unconditional.

City Developments previously offered 545 pence per M&C share, plus a special dividend of 7.5 pence. It said the new offer is final.

M&C's independent directors said they consider the terms of the final offer to be fair and reasonable and recommend that shareholders accept it.

M&C to delist from FTSE 250

Upon the final offer becoming or being declared wholly unconditional, M&C will apply for de-listing from the London Stock Exchange.

City Developments is a Singapore-based international property and hotel conglomerate. It currently owns and manages a portfolio of residential and investment properties, with operations in 97 locations in 26 countries.

It intends to remain a hotel owner and operator, and has no intention to sell or repurpose any hotels in London or New York for at least three years.

M&C shares at 1600 GMT were up 31 pence, or 5.4%, at 609 pence.