US: Blackstone and Starwood Capital Group’s $6.3 billion acquisition of Extended Stay America has been approved by shareholders.
The preliminary results of the June 8 shareholder vote show that a majority were in favour of the deal at $20.50 a share, according to a company statement.
The private equity firms agreed to buy Extended Stay in March for $19.50 a share, raising their offer by $1 per share after opposition from six shareholders, including Tarsadia Capital, which campaigned to block the deal.
Tarsadia and some other investors continued to oppose the deal despite the price increase, arguing the sales process was flawed, the timing was wrong, and the standalone prospects for the company were better than the value being offered.
The deal is scheduled to close on June 16, and the company will begin trading ex-dividend on June 14. A cash dividend payment of $1.75 per share is scheduled to be paid on June 17, 2021. Shareholders who purchased STAY prior to the ex-dividend date are eligible for the cash dividend payment.
