SINGAPORE (Dec 9): Millennium & Copthorne Hotels has agreed to a sweetened takeover offer from City Developments.

City Developments, majority shareholder of M&C, offered 620 pence per share in cash to acquire the 34.8% of the hotelier that it does not already own.

This is 12.2% higher than CDL’s 552.5 pence per share cash proposal, announced on Oct 9.

See: City Developments to take Millennium & Copthorne private, values hotel group at $3.2 bil

The revised offer values the London-listed company at about 2 billion pounds ($3.6 billion).

The revised offer, which was declared final, has been recommended by M&C's independent directors. It was announced 75 minutes before a takeover panel deadline for CDL to make a firm offer or walk away.

Some of M&C's smaller shareholders had argued that CDL's Oct offer put too low a price on the business because it did not reflect the value of its extensive property portfolio.

See: City Developments hits minority resistance in offer for hotel arm

See also: Millennium & Copthorne independent directors recommend shareholders accept CityDev offer

M&C owns, operates and invests in 137 hotels around the world.

A source close to some of the minority investors told Reuters the improved offer still "materially" undervalues the company.

M&C shares rose 6% in London on news of the bid to close at 613.5 pence.

Shares of CDL closed 1 cent lower at $12.31 in Singapore on Friday.

See: Millennium & Copthorne reports 19.6% rise in 3Q earnings to $99 mil