Shares in Millennium & Copthorne Hotels have surged to the top of the FTSE 250 risers chart, after the majority owners made a full takeover bid.
Singapore-based City Developments Limited made the cash offer of 552.5p per share, causing the hotel group’s share prices to surge by 20.7 per cent or 94.5p on Monday, to 549.5p.
The bid from the property firm, which values the Millennium & Copthorne Hotels business at £1.794bn, represents a 21.4% premium on the company’s closing share price last Friday.
Millennium Hotel in London will not be re-purposed or sold if takeover bid is successful.
City Developments has said it will maintain the company’s current business model and has no intention to sell or re-purpose its hotels in New York and London.
The hotels firm owns seven locations in the capital, including the Chelsea Harbour Hotel and the eponymous Millennium hotels in Mayfair and Knightsbridge.
The property group has until November 6 to make a firm takeover offer, for the group. City Developments Limited currently owns 65.2% of the FTSE 250-listed firm.
Millennium & Copthorne’s founder and chairman Kwek Leng Beng also serves as the executive chairman of its majority shareholder.
City Developments, is Singapore’s second-largest property developer.