M&A
confidence high
sentiment positive
materiality 0.85
Choice Hotels proposes to acquire Wyndham for $90/share, ~$7.8B equity value
CHOICE HOTELS INTERNATIONAL INC /DE
- Total equity value ~$7.8B (enterprise value ~$9.8B); consideration 55% cash / 45% stock.
- 26% premium to 30-day VWAP, 11% premium to 52-week high, 30% premium to latest close.
- Annual run-rate synergies of ~$150M; two Wyndham board seats planned.
- Previous offers increased from $80 to $85 to $90; Wyndham disengaged after six months of dialogue.
- Financing highly confident from two bulge bracket banks; no financing contingency.