Blackstone, Starwood Capital raise offer for Extended Stay to $20.50 per share


Article content

Extended Stay America said on Tuesday Blackstone Group and Starwood Capital Group raised their buyout bid for the hotel operator by $1 per share, after a proxy adviser recommended shareholders vote against the $6 billion takeover offer.

Under the deal, a joint venture between funds managed by the two companies will pay Extended Stay shareholders a total of $20.50 per share, up from a previous offer of $19.50 per share in March.

“The $20.50 per paired share consideration represents the Blackstone/Starwood Capital joint venture’s best and final offer,” the companies said in a statement.

The new bid comes a week after ISS said the deal terms of the previous $6 billion offer did not appear to be sufficiently compelling.

The amended deal has been unanimously approved by the board of Extended Stay America. The deal is expected to close on June 16, the company said.

Extended Stay specializes in economical temporary housing for healthcare professionals, and last year proved stronger than its peers even as bookings plunged across the U.S. hotel industry due to the pandemic.

Shares of Extended Stay, which owns and operates 650 hotels in the United States, were up about 1% before the bell. (Reporting by Sanjana Shivdas in Bengaluru; Editing by Devika Syamnath and Krishna Chandra Eluri)



Source link

Latest

Cheryl, 39, admits she’s considered adoption and gushes over ‘headstrong’ son Bear, 5

Cheryl has revealed she's no longer set on having a second child because of the state of the world. The 39-year-old singer shares son...

Feel-good books to read when feeling stressed or bored

The book by Claude M Bristol was first published in 1948, but remains a gem till date for helping people feel positive and...

How to Cozy Up to Startup Investors

Take a look at this post if you want to learn how to maintain a good relationship with investors.Read the full storySource link...

How Active Investment Strategies Keep Scaling Businesses from Stalling

There are 31.7 million small businesses in the U.S. out of which, 25.7m have no staff members. Companies that take on more business...

Kimberly Wyatt, Rochelle Humes and Millie Mackintosh attend opening of Dubai’s Atlantis The Royal

Kimberly Wyatt, Rochelle Humes and Millie Mackintosh all cut very glamorous figures as they attended the opening of Dubai's new luxury hotel, Atlantis...