City Developments' takeover bid for M&C Hotels fails

City Developments' takeover bid for M&C Hotels fails

By: 
PC Lee
28/01/18, 10:00 am

SINGAPORE (Jan 28): City Developments has failed in its takeover bid of Millennium and Copthorne Hotels (M&C Hotels).

This comes after CDL and parties in concert failed to secure valid acceptances representing more than 50% of shares not already owned them, at the final closing date of the final offer.

As at 1pm on Jan 26, the CDL parties received a total of 53.3 million shares, representing 47.14% of the shares not already owned by them.

CDL had earlier extended its final offer deadline from Jan 23, to Jan 26, after securing 44.21%.

CDL says, "The board of CDL respects the decision of the offeree shareholders. CDL remains committed to maintaining its controlling shareholding in the offeree, supporting the offeree’s strategy as a hotel owner and operator and the extensive capital expenditure program required to improve performance."

As at the close of Jan 25, CDL and its parties hold 211.7 million shares out of 324.8 million issued shares in M&C Hotel, representing a 65.2% stake.

This comprises Singapura Developments which owns 170.6 million shares and Reach Across International which owns 41.1 million.

Under the Dec 8 terms of the final offer, shareholders were entitled to receive a cash amount of 600 pence per share, plus a special dividend of 20 pence.

This was a revision from the first offer of 545 pence in cash, plus a special dividend of 7.5 pence.

Shares in London-listed M&C Hotels closed 27 pence lower at 546 pence on Friday.

Living it up

SINGAPORE (Mar 25): This is the season for indices. On March 20, Singapore was ranked 34th in the World Happiness Index — less happy than Taiwan, but far more cheery than Hong Kong and China, as well as its neighbours, Thailand, Malaysia and Indonesia. Globally, the Scandinavian and north European cities top the index; and New Zealand, Canada and Austria round out the top 10. The index this year focuses on happiness and the community, taking into account how happiness has evolved over the years, as affected by technology, social norms, conflicts and government policies. A week earlier, th....
Read More >>

The charismatic bankrupt who allegedly pulled the strings behind Singapore's largest stock manipulation scandal

SINGAPORE (Mar 26): Garbed in purple overalls, John Soh Chee Wen cuts a relaxed figure as he takes his seat. The garment falls fittingly on his athletic frame, not unlike a designer suit. It could well have made a fashion statement, save for the word "prisoner" emblazoned in white across the back. As his legal team huddled around him before the start of the trial, the 60-year-old is a picture of calm. At one point, he casually flashes a thumbs up at his lead counsel, N Sreenivasan, a managing director and senior counsel at Straits Law LLP. Then, as he turns back to his seat in the dock, ....
Read More >>

OCBC still bullish on banking stocks after a lacklustre FY18

SINGAPORE (Mar 26): OCBC Investment Research remains bullish on Singapore’s banking space while keeping its sector “overweight” with “buy” calls on both DBS and UOB, which have been given fair value estimates of $29.31 and $28.30, respectively. Both stocks had dividend yields of 4.8%, with DBS and UOB trading at the respective book values of 1.3 times and 1.1 times, or at an average of 1.2 times historical book as at the close of Wednesday. In a Tuesday report, OCBC analyst Carmen Lee notes that raising this average to 1.3 times book and factoring a 10% premium for DBS over the....
Read More >>