By Lisa Kerner
Charlotte, N.C., April 30 - Eagle Hospitality Properties Trust, Inc. entered into a definitive agreement to be acquired by AP Aimcap, a joint venture of Apollo Real Estate Investment Fund V LP, Aimbridge Hospitality, LP, and JF Capital Advisors, LLC, for $13.35 per share and per unit in cash.
A termination fee of $12.75 million is included in the deal.
The purchase price represents a premium of about 21% over Eagle's three-month average closing share price.
Eagle said it plans to pay its quarterly common dividend, prorated through the closing of the transaction, which is slated for the third quarter of 2007.
The company's 8¼% series A cumulative redeemable preferred shares, non-callable prior to June 2010, are expected to remain outstanding following the closing of the transaction.
"The proposed merger reflects our long standing commitment to maximizing value for our shareholders," Eagle president and chief executive officer Bill Blackham said in a company news release.
"Since our initial public offering in October 2004, we have assembled an attractive portfolio of high-quality lodging assets. We believe the offer by AP Aimcap, whose sponsors are highly respected groups within our industry, fairly reflects the intrinsic value of these assets."
Eagle Hospitality is a Covington, Ky., real estate investment trust that owns 13 upscale hotels with brands including Hilton, Embassy Suites, Marriott and Hyatt.
| Acquirer: | AP Aimcap, a joint venture led by Apollo Real Estate Investment Fund V LP
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| Target: | Eagle Hospitality Properties Trust, Inc.
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| Price per share: | $13.35
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| Termination fee: | $12.75 million
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| Announcement date: | April 30
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| Expected closing: | Third quarter of 2007
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| Stock price for target: | NYSE: EHP; $11.90 on April 27
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