Hotel group Millennium & Copthorne (M&C) has agreed a deal to be acquired by its majority owner, putting an end to a long-running dispute over the company’s ownership.
Shares in the FTSE 250 firm soared by 36% on Friday afternoon after it announced a deal with Singapore-based City Developments Limited (CDL).
CDL, which already owns 65.2% of the hotel operator, will pay 685p per share for the remaining holdings.
The price represents a 37% premium on Thursday’s closing price of 500p and values the entire company at £2.23 billion.
Irrevocable undertakings to accept the offer have already been pledged by a number of shareholders, who between them hold 43.58% of the M&C shares not already owned by CDL.
Last year, minority shareholders in the firm rejected a previous advance from CDL, which had offered to pay 620p per share.
The deal must receive backing from investors with holdings equivalent to at least 50% of shares not owned by CDL.
If it is successful, the acquisition will take the company off the London Stock Exchange.
Sherman Kwek, group chief executive of CDL, said: “We believe that a privatised M&C will be in the best position to navigate the increasingly challenging and competitive global hospitality landscape with agility and nimbleness.
“M&C will be able to leverage CDL’s significant resources, comprehensive real estate capabilities and global network to reposition its assets and drive sustainable hotel performance.”
M&C operates 140 hotels in more than 26 countries, including London’s Millennium Gloucester Hotel and New York’s Millennium Broadway.