Property developer City Developments on Wednesday the offer to privatise London-listed Millennium & Copthorne Hotels (M&C) will not be extended beyond January 26.
CDL has offered 620 pence per share in cash to acquire the 34.8 percent of the hotelier M&C that it does not already own, however, minority investors rebuffed the offer saying it put too low a price on the business because it did not reflect the value of its extensive property portfolio.
City Developments (CDL) is a part of Singapore-headquarterd Hong Leong Group, headed by Kwek, who is also the chairman of M&C. City Developments already own about 65 percent stake in M&C.
"We believe this Final Offer represents full value for the M&C shares that the CDL group does not already own ... This offer is highly unlikely to be repeated in the near future and the Board of CDL would encourage M&C shareholders to accept it," Kwek Leng Beng, Chairman of CDL said in a statement.
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Given the many challenges the M&C faces today, CDL believes that taking the company private is in the best interests of all M&C shareholders, the company said.
The statement added that M&C faces multiple challenges and a highly competitive landscape; and significant capital investment is needed which could adversely impact the M&C earnings and ability to maintain its dividend.
M&C has over 130 hotels spread across 17 countries, including the gateway cities of London, New York, Paris, Auckland, Dubai, Beijing and Singapore.
Shares in City Developments fell 0.3 percent to S$13.44 on the Singapore Exchange.
