The Starwood-Marriott merger is back on.
Marriott International Inc. and Starwood Hotels & Resorts Worldwide, Inc. issued a joint press release today encouraging shareholders of both companies to vote in support of the proposed merger.
Both companies note that their renewed request for shareholder support follows Starwood’s announcement that the Anbang Insurance Group-led consortium of investors had withdrawn its alternative proposal to acquire Starwood.
Marriott and Starwood will host their respective shareholder meetings on April 8, 2016 at 10:00 a.m. eastern time.
Under the terms of the existing merger agreement, Starwood shareholders will receive $21.00 in cash and 0.80 shares of Marriott International, Inc. Class A common stock for each share of Starwood Hotels & Resorts Worldwide, Inc. common stock. Starwood shareholders will own approximately 34 percent of the combined company’s common stock after completion of the merger, based on current shares outstanding.
Arne Sorenson, president and chief executive officer, Marriott International, said, “We are focused on maximizing shareholder value and from the beginning of this process we have been steadfast in our belief that a combination with Starwood will offer the highest value to all shareholders. Together, we can provide opportunities for significant equity upside and great long-term value driven by a larger global footprint, wider choice of brands for consumers, substantial synergies, and improved economics to owners and franchisees leading to accelerated global growth and continued strong returns. Our integration teams have been diligent in their work over the last few weeks and are more committed than ever to a timely and smooth transition.”
The companies also note that Starwood’s Board of Directors reiterated its unanimous support of the merger and that the Board recommends that Starwood stockholders vote their shares in favor of the pending combination with Marriott.
The merger will create the world’s largest hotel company, with 30 brands across all major customer segments, significant economies of scale and the most powerful loyalty program in hospitality.