Choice Hotels International, a budget hotel chain, has launched a hostile takeover bid to acquire Wyndham Hotels & Resorts. Despite multiple failed attempts in recent months, Choice is determined to move forward with their offer of $49.50 in cash and 0.324 Choice shares for each Wyndham share.
The total value of the deal remains at $90 per share or approximately $7.8 billion. This announcement comes after Choice revealed they currently own 1.5 million shares of Wyndham stock worth over $110 million and plan to nominate several directors during the upcoming annual shareholder meeting.
In addition, Choice has submitted the required Hart-Scott-Rodino (HSR) notification for regulatory review as they continue their pursuit of acquiring Wyndham.
According to Patrick Pacious, President and CEO of Choice Hotels International: “While we would have preferred a negotiated agreement with Wyndham’s board, their refusal to engage leaves us no choice but to take our proposal directly to shareholders.”
The exchange offer will expire on March 8th unless extended or terminated earlier by either party involved.
Wyndham responded stating that its Board will carefully review and evaluate the offer in consultation with independent financial advisors before determining what action is best for both parties involved.
This news follows an initial private proposal from October 16th which was publicly rejected by Wydnhm on November 14th citing it as a “step backwards.” Stay tuned for updates on this developing story.
