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+--- Thread: Ashford Prime received unsolicited $1.5B offer (/thread-779.html)
Ashford Prime received unsolicited $1.5B offer - TEAM HARLFORUM - 06-13-2016
Ashford Hospitality Prime Inc. has received an unsolicited, non-binding offer from the Los Angeles-based investor Weisman Group to buy the company’s 11 hotel assets for about US$735 million in cash.
Weisman would pay US$20.25 a share in cash for the common shares and about US$25 a share for preferred stock. The price for the common shares is 79% more than Tuesday’s closing price of US$11.32. Including the assumption of debt, the deal is valued at US$1.48 billion.
The Weisman Group's proposal requires that all existing Ashford Prime debt be refinanced (not specified but likely to occur before the transaction is consummated, according to R.W. Baird); debt repayment will likely result in a modest amount of pre-payment penalties and defeasance costs, which will be borne by Ashford Prim