Fairmont Shareholders Approve Acquisition By Kingdom Hotels And Colony Capital
April 18 2006 - 12:09PM
PR Newswire (US)
TORONTO, April 18 /PRNewswire-FirstCall/ -- Fairmont Hotels &
Resorts Inc. ("Fairmont" or the "Company") (TSX/NYSE: FHR) today
announced that its shareholders approved the acquisition of all of
the Company's outstanding common shares by a company (the
"Purchaser") owned by affiliates of Kingdom Hotels International
and Colony Capital at its Special Meeting of Shareholders held this
morning. Shareholders representing more than 70 percent of all
shares outstanding and approximately 98 percent of all votes cast,
voted in favor of the transaction involving the Company and the
Purchaser, exceeding the required 66 2/3%. The closing of the
transactions is subject to court approval in Canada as well as the
satisfaction or waiver of the other conditions specified in the
Acquisition Agreement. The Company will seek final court approval
on Thursday, April 20th. If court approval is obtained, the
transaction is expected to close in early May, after which all
Fairmont shareholders will receive US$45.00 in cash for each
Fairmont common share. Fairmont announced on April 14 that a group
holding approximately US$145,000,000 of its US$270,000,000
principal amount 3.75% Convertible Senior Notes due 2023 (the
"Notes") plans to oppose the transaction at the April 20 court
hearing. Fairmont believes that the position of the Noteholders is
without merit. However, if the opposition of this group of
Noteholders were successful, no assurance could be given as to
whether the closing of the transaction would occur or as to the
timing thereof. About Fairmont Hotels & Resorts Inc. Fairmont
is a leading owner/operator of luxury hotels and resorts.
Fairmont's managed portfolio consists of 88 luxury and first-class
properties with approximately 33,500 guestrooms in the United
States, Canada, Mexico, Bermuda, Barbados, United Kingdom, Monaco,
Kenya and the United Arab Emirates as well as two vacation
ownership properties managed by Fairmont Heritage Place. Fairmont
owns Fairmont Hotels Inc., North America's largest luxury hotel
management company, as measured by rooms under management, with 50
distinctive city center and resort hotels including The Fairmont
San Francisco, The Fairmont Banff Springs and The Fairmont
Scottsdale Princess. Fairmont also owns Delta Hotels, Canada's
largest first-class hotel management company, which manages and
franchises 38 city center and resort properties in Canada. In
addition to hotel management, Fairmont holds real estate interests
in 21 properties and an approximate 24% investment interest in
Legacy Hotels Real Estate Investment Trust, which owns 24
properties. Fairmont owns FHP Management Company LLC, a private
residence club management company that operates Fairmont Heritage
Place, a vacation ownership business. DATASOURCE: Fairmont Hotels
& Resorts Inc. CONTACT: Emma Thompson, Executive Director
Investor Relations, Tel: (866) 627-0642, Email: , Website:
http://www.fairmontinvestor.com/
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