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Red Lion Hotels (RLH) has announced that it has been acquired by Sonesta International Hotels in an all-cash transaction for approximately $90m (£66m).
Under the terms of the Merger Agreement, holders of RLH’s common stock will receive $3.50 (£2.05) per share in cash.
The transaction is currently expected to close in the first half of 2021, and is subject to customary closing conditions, including the approval of RLH’s shareholders, who will vote on the transaction at a future meeting.
RLH said that the transaction is not “contingent on receipt of financing” by Sonesta and that upon completion of the transaction, RLH will become a privately-held company no longer operating on the stock exchange.
R.Carter Pate, chairman of RLH, said: “We are excited about unlocking shareholder value through this all-cash transaction with Sonesta.
“After conducting a thorough review of strategic alternatives, the Board believes today’s announcement is in the best interest of all of Red Lion’s shareholders.”
Jefferies LLC will be serving as lead financial advisor for the merger.
