Millennium pthorne Hotels : Independent Committee Statement

For Immediate Release 26 January 2018

MILLENNIUM & COPTHORNE HOTELS PLC

LEI: 2138003EQ104LZ1JNH19

Statement by the Independent Committee regarding Lapse of Final Offer

The Independent Committee of Millennium & Copthorne Hotels Plc ('M&C' or the 'Company') notes the announcement made today by Agapier Investments Limited ('Offeror') and City Developments Limited ('CDL') indicating that the Offeror has not received acceptances in respect of a majority of shares of M&C not already owned by CDL and its subsidiaries (and persons acting in concert with them) ('CDL Parties') and that the Offeror's final offer ('Final Offer') for the entire issued and to be issued share capital of M&C not already owned by the CDL Parties lapsed as at 1:00p.m. today.

The Independent Committee was approached by CDL in August 2017 and initially rejected two proposed offers. As stated in the letter to shareholders dated 21 December 2017, the Independent Committee, which was advised as to the financial terms of the Final Offer by Credit Suisse, believed that the Final Offer was fair and reasonable after assessing a number of valuation methodologies and recommended shareholders accept it for the reasons set out in that letter.

The Independent Committee sought further to protect the interests of minority shareholders by ensuring that the Final Offer could not proceed unless it was accepted by holders of a majority of the shares not already owned by CDL Parties. The Independent Committee acknowledges that this threshold has not been met and that therefore M&C will remain as a listed company with CDL as the controlling shareholder.

Throughout this process the Independent Committee members have engaged with M&C's minority shareholders and actively sought and listened to their views. The Independent Directors will continue to engage with all shareholders and, whilst being mindful of the views expressed during the process, work to tackle the challenges facing the Company and drive the business forward to deliver value for the benefit of all shareholders. The Independent Directors will seek to meet with CDL and the CDL-appointed Directors, as a matter of priority, to discuss how this can be accomplished.

Commenting on the lapse of the Final Offer, the Independent Committee stated:

'After rejecting two proposed lower offers from CDL, the focus of the Independent Committee was to allow for M&C's minority shareholders to receive an offer. This was achieved and an acceptance condition was secured, which was a key element of our unanimous decision to recommend the final offer, allowing holders of a majority of the independently-held shares to decide the outcome. Shareholders have now spoken, we respect the result and will continue to work on behalf of all shareholders to deliver long-term value.'

Enquiries:
Millennium & Copthorne Hotels plc
Jonathon Grech, Group General Counsel and Company Secretary Peter Krijgsman, Financial Communications (Media)	+ 44 (0) 20 7872 2444
Credit Suisse International
Financial Adviser and Corporate Broker to M&C John Hannaford Stuart Upcraft	[phone]
Media Enquiries:
Instinctif Partners Limited Matthew Smallwood Mark Reed	[phone]