Jones Lang LaSalle
Group to buy Fairmont for $3.3B
Tuesday, January 31, 2006
Associated Press
A group of investors including a Saudi prince and a company that owns two Atlantic City casinos has agreed to buy the luxury hotel chain Fairmont Hotels & Resorts for about $3.3 billion in cash, Fairmont said yesterday.
Under the deal, a Canadian company owned by Prince Alwaleed bin Talal's Kingdom Hotels International and Los Angeles-based real estate investment fund Colony Capital, which owns the Resorts and Hilton casinos in A.C., will acquire all of Fairmont's outstanding shares for $45 each in cash.
"Colony's mission is to make major investments with world-class partners and irreplaceable assets managed by proven management teams," Prince Alwaleed said in a statement.
The amount represents a 2.7 percent premium to Fairmont's closing stock price Friday. But Fairmont noted that it is a 28 percent premium over its closing price on Nov. 4, the last trading day prior to the first public expressions of interest in the company.
Last week, Fairmont urged shareholders to reject a $40-per-share offer from activist investor Carl Icahn to acquire a controlling stake in the company.
Once the Fairmont acquisition is completed, the investment group intends to combine the company with Singapore-based hotel chain Raffles Holdings, which would bring its combined portfolio to 120 hotels in 24 countries.
"Fairmont and Raffles are an excellent strategic fit with rich histories, global brand recognition and complementary destinations," Prince Alwaleed said. "Joining the two luxury companies creates an ideal platform for continued international expansion."
Including assumed debt, Fairmont said the value of the deal is about $3.9 billion.
The deal was unanimously approved by Fairmont's board of directors, who recommended shareholders vote in favor of it. Fairmont will remain an independent company headquartered in Canada, while Raffles will also retain its independent brand identity.
© 2006 The Star Ledger
© 2006 NJ.com All Rights Reserved.
Group to buy Fairmont for $3.3B
Tuesday, January 31, 2006
Associated Press
A group of investors including a Saudi prince and a company that owns two Atlantic City casinos has agreed to buy the luxury hotel chain Fairmont Hotels & Resorts for about $3.3 billion in cash, Fairmont said yesterday.
Under the deal, a Canadian company owned by Prince Alwaleed bin Talal's Kingdom Hotels International and Los Angeles-based real estate investment fund Colony Capital, which owns the Resorts and Hilton casinos in A.C., will acquire all of Fairmont's outstanding shares for $45 each in cash.
"Colony's mission is to make major investments with world-class partners and irreplaceable assets managed by proven management teams," Prince Alwaleed said in a statement.
The amount represents a 2.7 percent premium to Fairmont's closing stock price Friday. But Fairmont noted that it is a 28 percent premium over its closing price on Nov. 4, the last trading day prior to the first public expressions of interest in the company.
Last week, Fairmont urged shareholders to reject a $40-per-share offer from activist investor Carl Icahn to acquire a controlling stake in the company.
Once the Fairmont acquisition is completed, the investment group intends to combine the company with Singapore-based hotel chain Raffles Holdings, which would bring its combined portfolio to 120 hotels in 24 countries.
"Fairmont and Raffles are an excellent strategic fit with rich histories, global brand recognition and complementary destinations," Prince Alwaleed said. "Joining the two luxury companies creates an ideal platform for continued international expansion."
Including assumed debt, Fairmont said the value of the deal is about $3.9 billion.
The deal was unanimously approved by Fairmont's board of directors, who recommended shareholders vote in favor of it. Fairmont will remain an independent company headquartered in Canada, while Raffles will also retain its independent brand identity.
© 2006 The Star Ledger
© 2006 NJ.com All Rights Reserved.
posted by Jones Lang LaSalle NJ News Blog at 11:58 AM
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