By Lisa Kerner
Charlotte, N.C., June 22 - Equity Inns, Inc. agreed to be acquired by an affiliate of Whitehall Street Global Real Estate LP 2007, part of Goldman Sachs & Co., for $23.00 per share in a cash deal valued at about $2.2 billion, including debt.
The per-share price is a premium of approximately 28% over Equity Inns' 90-day average closing share price and a 19% premium over the stock's June 20 closing price.
A $38 million termination fee is included in the agreement.
Equity Inns said it plans to pay its regular quarterly common share dividend for the quarter ending June 30 and will continue to pay regular quarterly dividends of up to $0.25 per share until the transaction closes sometime in the fourth quarter of 2007.
"After careful and thorough analysis, our board has endorsed this transaction with Whitehall as being in the best interests of the company and our shareholders," Equity Inns president and chief executive officer Howard A. Silver stated in a company news release.
"The board of directors has unanimously adopted the agreement and the merger and recommends that Equity Inns' shareholders approve the agreement and the merger."
Equity Inns is a self-advised real estate investment trust based in Germantown, Tenn.
| Acquirer: | Whitehall Street Global Real Estate LP 2007
|
| Target: | Equity Inns, Inc.
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| Transaction total: | $2.2 billion
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| Price per share: | $23.00
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| Termination fee: | $38 million
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| Announcement date: | June 21
|
| Expected closing: | Fourth quarter of 2007
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| Stock price for target: | NYSE: ENN: $22.68 on June 21
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