City Developments to Buy Millennium at $2.8 Billion

(Bloomberg) -- Singapore’s second-largest property developer is offering to buy out shareholders of Millennium & Copthorne Hotels Plc in a deal that would the company at $2.84 billion.

City Developments Ltd. said in a statement on Friday that it has made a final offer for the London-traded hotel chain at 685 pence per share, representing a 37% premium to the June 6 closing price of 500 pence. That’s up from a previous offer of 620 pence per share.

City already owns 65.2% of the shares in the company, and the final offer is conditional on more than half of the remaining shareholders accepting, according to the statement. Several minority owners that represent about 43.6% of outstanding shares have already agreed, City said in the statement.

City has been looking to diversify away from its reliance on the city-state’s residential market, according to Bloomberg Intelligence. The Millennium & Copthorne chain comprises 135 hotels in the U.K., Middle East, New Zealand and other countries, according to its website.

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