Marriott International on Friday swooped to buy a luxury Caribbean hotels firm backed by entrepreneur Luke Johnson in a £101 million deal.
Elegant Hotels said it has received a 110p per share offer from a subsidiary of Marriott, the operator behind brands such as Ritz-Carlton and Le Meridien. That is a 56.8% premium to the average share price over the past three months.
The sale would net Johnson, who is grappling with the fallout from an accounting scandal at Patisserie Valerie which he backed, a payout of about £12 million.
Shares in Elegant Hotels soared 38.5p, or 55%, to 108.53p.
Marriott said the acquisition would help it expand in the all-inclusive sector.
Simon Sherwood, non-executive chairman of Elegant Hotels, said: “The fact that Elegant Hotels has attracted the interest of a company of Marriott's calibre is a resounding endorsement of the outstanding quality of our properties, operations and people, and indeed of Barbados as a highly desirable destination. We are therefore unanimously recommending the offer to our shareholders."
Liberum is advising Elegant. Marriott is working with PwC.
