The move creates the largest player in the economy segment in the Americas.
Choice Hotels said on Tuesday it proposed to acquire all the outstanding shares of Wyndham Hotels & Resorts at a price of $90 a share.
Under the plan, Wyndham shareholders would receive $49.50 in cash per share and 0.324 shares of Choice common stock per share.
Choice’s proposal, which it spelled out on a website, represents approximately a 30% premium to Wyndham’s latest closing price.
The deal assumes a $7.8 billion valuation for the company. “With the assumption of Wyndham’s net debt, the proposed transaction is valued at approximately $9.8 billion,” says a company spokesperson.
The move would create the largest player in midscale and budget hotels
Wyndham was up 15% pre-market. Choice was down 2%.
More to come