Kingdom & Colony Create Global Hotel Leader
12 5월 2006 - 1:20AM
PR Newswire (US)
- Fairmont Plan of Arrangement Completed - TORONTO, May 11
/PRNewswire-FirstCall/ -- Fairmont Hotels & Resorts Inc.
("Fairmont" or the "Company") (TSX/NYSE: FHR) today announced that
the previously announced Plan of Arrangement has been completed and
all of Fairmont's outstanding common shares have been acquired by a
company (the "Purchaser") owned by affiliates of Kingdom Hotels
International and Colony Capital. Under the terms of the Plan of
Arrangement, the Company's shareholders will receive US$45.00 in
cash for each Fairmont common share held. With the completion of
the transaction, the Fairmont and Raffles' portfolios will now be
combined, transforming the companies into a global hotel leader
headquartered in Toronto, with 120 hotels in 23 countries under
four brands (Fairmont, Raffles, Swissotel and Delta). "We are very
excited about this transaction as it creates an expanded foundation
from which to build on our legacy, grow our brand and create
significant opportunities for our employees. With an expanding
global portfolio of exceptional resorts and gateway city
properties, our guests will be exposed to new, exciting
destinations with different cultures," said William R. Fatt,
Fairmont's Chief Executive Officer. "We look forward to working
with our partners who are committed to building on the success of
our Company." HRH Prince Alwaleed bin Talal bin Abdulaziz Alsaud of
Kingdom said, "As a long time investor in Fairmont, Kingdom has
recognized the Company's value and potential, which is attributable
to the dedication and professionalism of its management and
employees. We look forward to working with Colony to build on the
success of these brands and to further expand this irreplaceable
collection of properties around the world." "Our partnership with
HRH Prince Alwaleed in this global hotel company fulfills our
mission to invest with world class partners in irreplaceable assets
with proven management teams," commented Thomas J. Barrack, Jr.,
Chairman and Chief Executive Officer of Colony. "Fairmont and
Raffles are an excellent strategic fit with rich histories,
creating a brand-focused company with an expansive global footprint
that is dedicated to serve as the destination of choice for the
world's most discriminating travelers." The Purchaser's tender
offer for Fairmont's outstanding 3.75% Convertible Senior Notes due
2023 (the "Notes") expired at 5:00 p.m. EST on May 10, 2006. The
Purchaser has advised Fairmont that, at the closing of the tender
offer, $267 million aggregate principal amount, or approximately
99%, of the $270 million aggregate principal amount of issued and
outstanding Notes had been tendered for purchase. Fairmont intends
to satisfy any conversion on the remaining outstanding Notes by way
of a cash payment. Fairmont shareholders who hold their Fairmont
shares through a broker or other financial intermediary will
receive payment of the purchase price for their shares following
the deposit by the broker or financial intermediary of share
certificates with Computershare Investor Services Inc., the
Depositary for the Plan of Arrangement. Shareholders who hold their
Fairmont shares in registered form will receive payment of the
purchase price following the deposit of their Fairmont share
certificates with the Depositary in accordance with the
instructions contained in the Letter of Transmittal previously sent
to registered shareholders. Any questions regarding payment of the
purchase price, including any request for an additional copy of the
Letter of Transmittal, should be directed to the Depositary via
telephone at 1.866.982.9701 (toll free in North America) or
514.982.7139 or via email at . With the completion of the Plan of
Arrangement, Fairmont's common shares will cease to be listed for
trading on the New York Stock Exchange and the Toronto Stock
Exchange. About Kingdom Hotels International Kingdom is owned by a
trust for the benefit of HRH Prince Alwaleed bin Talal bin
Abdulaziz Alsaud and his family. HRH Prince Alwaleed and related
trusts and other entities have made substantial investments in
multiple sectors including banking, hotels, media,
telecommunications, technology, construction and real estate,
entertainment, and upscale fashion, among numerous others.
Significant hotel-related investments include interests in Fairmont
Hotels & Resorts, Four Seasons Hotels and Resorts, the George V
Hotel and Movenpick Hotels & Resorts, covering more than 260
hotels throughout the U.S., the Middle East and Africa. Significant
investments in other sectors include interests in Citigroup, News
Corp., Time Warner, Motorola, Apple Computers, Ballast Nedam,
Canary Wharf, Disneyland Paris, Saks Inc. and Kingdom Center. About
Colony Capital Founded in 1991 by Chairman and Chief Executive
Officer Thomas J. Barrack Jr., Colony is a private, international
investment firm focusing primarily on real estate-related assets
and operating companies. Prior to the closing of the Fairmont
transaction, Colony owned Raffles Hotels & Resorts. Today, the
firm has invested more than $20 billion in over 8,000 assets
through various corporate, portfolio and complex property
transactions. Colony owns the legendary Costa Smeralda resort in
Sardinia, Italy and other investments in exclusive leisure
lifestyle and resort properties have included Amanresorts, London's
Savoy Group, the Orchid at Mauna Lani on Hawaii's Big Island, Hotel
Guanahani in St. Barts, The Stanhope Hotel in New York City, the
"W" in Honolulu, the Mayfair in Miami, Resorts International
casinos in North America, Accor Casinos in Europe, the Sunrise
Colony Country Club communities and the Hawks Town Stadium,
Shopping Center and Hotel complex in Fukuoka, Japan. Colony has a
staff of more than 110 and is headquartered in Los Angeles, with
offices in Beirut, Boston, Hawaii, Hong Kong, London, Madrid, New
York, Paris, Rome, Seoul, Shanghai, Taipei, and Tokyo. DATASOURCE:
Fairmont Hotels & Resorts Inc. CONTACT: Contacts For Fairmont:
Emma Thompson, Tel: (416) 874-2485, Email: , Website:
http://www.fairmontinvestor.com/; For Kingdom and Colony: Lisa
Baker, Owen Blicksilver PR, Inc., Tel: (914) 725-5949, Email:
Copyright