Saturday 16 November, 2019

Elegant proud of Marriott's interest and $262 million-dollar offer

Waves Hotel & Spa, one of the Elegant Hotels Group west coast properties in Barbados. (FILE)

Waves Hotel & Spa, one of the Elegant Hotels Group west coast properties in Barbados. (FILE)

The move by Marriott International to try to acquire Elegant Hotels Group in Barbados is one of the biggest stamps of approval the hotel-chain could ever gain.

With Marriott seen as a giant in the tourism industry, this is how one member of the Elegant Hotels Group finds the appealing offer. He considers it to be an honour.

Commenting on the acquisition as reported in a press release published on the Marriott International Inc. website, issued today, October 18, 2019,  Non-Executive Chairman of Elegant, Simon Sherwood said:

“The Board of Elegant Hotels is confident in the Group’s long-term prospects but believes that this offer represents compelling value for our shareholders and a great opportunity for our employees to be part of one of the world’s leading hotel companies.

"The fact that Elegant Hotels has attracted the interest of a company of Marriott’s caliber is a resounding endorsement of the outstanding quality of our properties, operations and people, and indeed of Barbados as a highly desirable destination."

Against this background, he urged, "We are therefore unanimously recommending the offer to shareholders.”

The deal is almost completed however it awaits shareholder approval to some extent. According to the release, the completion of the transaction is subject to satisfaction or waiver of the offer conditions set out in the offer announcement, including approval by Elegant shareholders.

The offer price is USD $130.1 million or BBD $262 million and it implies an enterprise value for Elegant of approximately USD $199.0 million based on Elegant’s total net debt of US $68.9 million as at March 31, 2019 as set out in Elegant’s most recent half-year report for the six months ended March 31, 2019.

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