An investor group led by Saudi prince Alwaleed agreed to fork over $3.9 billion for the embattled
Under the deal, Kingdom Hotels International and Colony Capital will acquire Toronto-based Fairmont's outstanding common shares for $45 apiece, a 3% premium to the stock's closing price Friday. "This all-cash transaction for 100% of the Company's shares represents a 28% premium over Fairmont's closing share price on November 4, 2005, the last trading day on the
prior to the public expressions of interest in the Company, and exceeds the highest trading price of the shares," the Alwaleed group said.
Kingdom and Colony plan to combine the Fairmont and Raffles portfolios following the completion of the transaction, transforming the companies into a luxury global hotel leader with 120 hotels in 24 countries. Fairmont will remain an independent hotel management and ownership company headquartered in Canada and Raffles, based in Singapore, will also retain its independent brand identity. Raffles owns and manages a portfolio of 33 properties located primarily across Asia and Europe, including its flagship property built in 1887, the Raffles Hotel, Singapore.
Last week, Fairmont urged shareholders to reject Carl Icahn's $40-per-share bid to acquire a controlling stake in the company.