The board of directors for Four Seasons
Hotels & Resorts has unanimously approved a $3.8 billion bid
from Cascade Investment, a company owned in part by Microsoft
co-founder Bill Gates, and Kingdom Hotels International to acquire
control of the luxury chain.
Kingdom Hotels,
which is owned by Prince Alwaleed bin Talal, a member of the Saudi
royal family owns five Four Seasons hotels and has another three in
development.
The transaction,
which must still be approved by Four Season's stockholders and
regulatory authorities, will take the publicly traded hotel firm
private.
Under terms of
the acquisition, shareholders would receive $82 cash per share, a
28.4% premium over Four Season's closing price on the New York
Stock Exchange on Nov. 3, 2006, just days before the acquisition
proposal was first announced.
A meeting of Four
Season's shareholders is slated for April.
"I am delighted
that the board has determined to support what I believe is the best
way to preserve and expand the long-term strategy, vision and core
values of Four Seasons," said Isadore Sharp, founder, chairman and
CEO of Four Seasons.
Upon completion
of the transaction, Triples, a holding company controlled by
Sharp's family, will retain a minority stake in the hotel chain.
Sharp would continue to serve as chairman and CEO and the chain
would also remain headquartered in Toronto.
Four Seasons said
that if the transaction is completed, Sharp will be entitled to
proceeds of approximately $289 million related to a long-term
incentive agreement.
To contact the reporter who wrote this article, send e-mail
to Michael Milligan at [email protected].