Four Seasons Hotels has received a$US3.7 billion ($A4.7 billion) buyout proposal that will see the company delisting from the New York Stock Exchange and controlled by private hands.
The proposal was received from Isadore Sharp and Triples Holdings Limited (the controlling shareholder of Four Seasons), together with Kingdom Hotels International, a company owned by a trust created by His Royal Highness Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, and Cascade Investment, L.L.C. (an entity owned by William H. Gates III).
Four Seasons has been advised that Sharp and Triples have entered into an agreement with Kingdom and Cascade to propose a transaction through which Kingdom and Cascade (either directly or through affiliated entities) would acquire the outstanding Limited Voting Shares of the Company for $US82.00 cash per share, which represents a 28.4% premium over the closing price of the Limited Voting Shares of Four Seasons on the New York Stock Exchange on November 3, 2006 and a 33.1% premium over the weighted average closing price over the past six months.
Triples, which is Sharp’s family holding company, would retain its investment in Four Seasons.
If the transaction is completed, Triples would hold approximately 10% of the shares of Four Seasons (through a separate class of special voting shares), with the balance of the shares of the Company split equally between Kingdom and Cascade.
Sharp would remain as chairman and chief executive of Four Seasons, continuing to direct all aspects of the day-to-day operations and strategic direction of the Company, which will remain headquartered in Toronto.
The transaction would be subject to shareholder and regulatory approvals and other conditions usual for a transaction of this type.
The board cautions shareholders and others considering trading in securities of the company that it has only received the proposal, and no decisions have been made by the board of directors with respect to the company’s response to the proposal.
The board of directors of Four Seasons has established a special committee of independent directors that will consider the proposed transaction and make recommendations to the board, as well as supervise the preparation of a formal valuation in connection with the proposed transaction.
By Adam Parsons
