US luxury property giant Strategic Hotels & Resorts said Tuesday it has accepted a $6 billion all-cash takeover offer from investment firm Blackstone, a leader in global real estate.
Strategic owns and manages a portfolio of 18 upscale hotels, including the JW Marriott Essex House in New York, the Four Seasons hotel in Washington, and the Marriott Hamburg in Germany.
The Blackstone offer "creates significant stockholder value with a high degree of execution certainty," said Raymond Gellein, chairman and chief executive of Strategic, in a statement.
Blackstone will pay $14.25 per share for Chicago-based Strategic and also pay $14.25 per units Strategic does not hold in a subsidiary, Strategic Hotels Funding LLC.
All told, including debt acquired, the deal is worth about $6 billion.
The offer price represents a 13 percent premium over Strategic's intraday trading price on July 23, when media reported a potential deal in the works.
"We are excited about the opportunity to acquire one of the highest quality luxury hotel portfolios in the US. As long-term investors in the lodging industry, we remain confident in the fundamentals of the sector despite recent market volatility," Blackstone co-head of US acquisitions, Tyler Henritze, said in the statement
Blackstone's real-estate portfolio includes hotel, office, retail and industrial properties in the US, Europe, Asia and Latin America, among them Hilton Worldwide and Chinese shopping malls SCP.
Strategic said that the transaction was expected to be completed by the first quarter of 2016.
Shares in Strategic opened 3.45 percent higher at $14.06, while The Blackstone Group gained 2.5 percent at $34.51.
GMT 22:53 2018 Thursday ,13 December
Indian Minister of Trade meets with UAE Ambassador, Chairman of Emaar PropertiesGMT 13:41 2018 Thursday ,06 December
Tyre maker Continental opens lab to extract rubber from dandelionsGMT 15:22 2018 Friday ,30 November
Paper industry around famous Chinese lake to be shut down by 2019GMT 11:13 2018 Sunday ,18 November
Electricx 2018 kicks off with participation of over 20 countriesGMT 14:17 2018 Thursday ,25 October
BP eyes entering several new Rosneft projectsGMT 12:08 2018 Saturday ,20 October
OPEC participants performed Vienna Agreement by 111%GMT 16:14 2018 Saturday ,06 October
Saudi Aramco IPO to go ahead by early 2021GMT 19:01 2018 Thursday ,04 October
LEAD S. Korean firms offer aid for quake-hit IndonesiaMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor