Choice Hotels International Inc. (CHH) is urging shareholders of Wyndham Hotels & Resorts Inc. (WH) to consider accepting the company’s unsolicited buyout offer, despite opposition from the Wyndham board.
Wyndham Board Rejects Buyout Offer
On Monday, Wyndham’s board recommended that its shareholders reject the buyout offer of $85 per share, describing it as “inadequate and highly conditional.” The board believes that Wyndham can deliver shareholder value that surpasses the current offer.
Choice Hotels’ Statement
In response, Choice Hotels released a statement on Wednesday, urging Wyndham shareholders to tender their shares in the exchange offer to send a “clear message” to the board. Choice Hotels accuses Wyndham of threatening shareholders’ ability to realize value and questions the company’s ability to support franchisees while generating shareholder value through mergers and acquisitions.
Support for the Transaction
Choice Hotels reveals that it has recently engaged with Wyndham shareholders who represent over 40% of outstanding shares, based on available filings. During these discussions, many shareholders expressed consistent support for the transaction due to its industrial merits. Shareholders also desire both parties to collaborate and reach a swift resolution.
Confident in Completion Timeline
Choice Hotels is confident that the transaction can be completed within a customary timeframe of one year. The company remains committed to moving forward with the process.
Choice Hotels has reached out to Wyndham Hotels for a comment on this story.
Choice Hotels shares rose 1.4% in premarket trades on Wednesday, while Wyndham Hotels shares rose 0.1%.