LaSalle Hotel Properties (LHO) announced that it has entered into a definitive agreement with affiliates of Blackstone Real Estate Partners VIII, under which Blackstone (BX) will acquire all outstanding common shares of beneficial interest of LaSalle for $33.50 per share in an all-cash transaction valued at $4.8B.
The transaction, which has been unanimously approved by LaSalle’s Board of Trustees, represents a premium of approximately 35% over LaSalle’s unaffected share price of $24.84 as of March 27, 2018, the day before the public announcement of a proposal to acquire the company in an all-stock transaction. The purchase price also represents a premium of approximately 13% to LaSalle’s consensus net asset value of $29.64 per share per FactSet as of May 18, 2018. “We are pleased to have reached this agreement with Blackstone, which we believe is in the best interests of our shareholders and represents the culmination of a thorough review of strategic alternatives,” said Stuart L. Scott, Chairman of the Board of LaSalle. “As part of the Board’s review, the Company and its advisors contacted 20 potential buyers, including strategic parties, brands and private equity firms. As a result, 10 potential buyers executed confidentiality agreements and received non-public information, and the Board engaged in extensive negotiations over price and terms. After careful consideration of multiple proposals received, the Board determined that this transaction represents the most compelling opportunity for LaSalle’s shareholders, delivering a significant premium with immediate and certain cash value.”
Completion of the transaction, which is expected to occur in the third quarter of 2018, is contingent upon customary closing conditions, including the approval of LaSalle’s shareholders. The transaction is not contingent on receipt of financing. Pursuant to LaSalle’s previously announced dividend policy, the company expects to pay a quarterly dividend of $0.225 per common share of beneficial interest for the quarter ending June 30, 2018.
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