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Elegant Hotels agrees to Marriott takeover

The Barbados-based hotelier said the ongoing weak performance of sterling has impacted its growth strategy

Elegant Hotels Group PLC - Marriott to acquire Elegant Hotels
The agreed offer price is 110p per share

Elegant Hotels Group PLC (LON:EHG) shares soared after agreeing to be acquired by Marriott International Inc (NASDAQ:MAR).

The agreed offer price is 110p per share, valuing the AIM-listed company £100.8mln, based on US dollar quotations of Elegant’s enterprise value of US$199mln and net debt of US$68.9mln.

READ: Elegant Hotels says bookings for next year are strong after mixed 2018

The Barbados hotelier said the ongoing weak performance of sterling has hit its share price, reducing its freedom to pursue its growth strategy, while directors felt that changes in the macroeconomic landscape could potentially reduce demand from its core customer base.

“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,” said Elegant’s non-executive chairman Simon Sherwood.

Elegant shares were up 55% to 108.45p.

Quick facts: Elegant Hotels Group PLC

Price: 110.5 GBX

LSE:EHG
Market: LSE
Market Cap: £98.14 m
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