18th Oct 2019 07:58
(Alliance News) -Â Marriott International Inc and London-listed Elegant Hotels Group PLC on Friday said they have reached a takeover agreement.
US hotel chain Marriott, via wholly-owned indirect subsidiary International Hotel Licensing Co Sarl, will pay 110 pence in cash per Elegant share. This values the entire share capital of Elegant at GBP100.8 million.
The offer represents a 57% premium to Elegant's closing price on Thursday of 70p, and implies an enterprise value of USD199.0 million based on the firm's net debt.
For context, Marriott has a market capitalisation of around USD39.71 billion.
Elegant directors intend to recommend unanimously that shareholders vote in favour of the deal.
"The board of Elegant Hotels is confident in the group's long term prospects but believes this offer represents compelling value for our shareholders and a great opportunity for our employees to be part of one of the world's leading hotel companies," said Elegant Chair Simon Sherwood.
Marriott said the deal will allow it to expand its "all-inclusive platform", whilst offering additional leisure destinations to its 133 million Marriott Bonvoy members.
Elegant owns and operates seven luxury freehold hotels and a beach front restaurant, Daphne's, on the island of Barbados. Elegant's portfolio currently comprises 588 rooms.
Marriott President & Chief Executive Arne Sorenson said: "There is a strong and growing consumer demand for premium and luxury properties in the all-inclusive category.
"The addition of the Elegant Hotels portfolio will help us further jumpstart our expansion in the all-inclusive space, while providing more choices on the breathtaking island of Barbados for our 133 million Marriott Bonvoy members."
By Lucy Heming;Â [email protected]
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