Skift Take
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
