Why Did Sotherly Hotels' Stock Surge A Whopping 130% Today?
Synopsis
The company said that the $ 2.25-per-share acquisition offer represents a 152.7% premium over its October 24 closing share price of $0.89.
Sotherly Hotels Inc. (SOHO) said on Monday it has entered into a definitive merger agreement with a joint venture, KW Kingfisher LLC, formed by a group of investment funds, which will acquire all outstanding shares of the company for $2.25 per share in cash.
Shares of Sotherly Hotels jumped 130% following the news of the $46.1 million deal. KW Kingfisher LLC is a joint venture led by affiliates of Kemmons Wilson Hospitality Partners, with Ascendant Capital Partners serving as a strategic joint venture partner.
The per-share offer of $2.25 represents a premium of 152.7% over the company’s closing share price on October 24 of $0.89. Sotherly Hotels said that the merger has been unanimously approved by Sotherly’s full board of directors following a unanimous recommendation from a special committee comprised of independent directors of the board.
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