Choice Hotels has abandoned its $8 billion hostile takeover of Wyndham Hotels & Resorts following a five-month-long public battle.
Last October, Choice launched a public bid to buy Wyndham after Wyndham decided to disengage from further discussions with Choice, following a prior six months of talks beginning in April 2023.
Choice had proposed to acquire all the outstanding shares of Wyndham Hotels & Resorts at a price of $80.00 per share in April, $85 per share on May, $90 per share in August, and $86 per share in November. In January, Choice directly approached 40 per cent of Wyndham shareholders and nominated eight people to stand for election to Wyndham’s board at Wyndham’s 2024 AGM.
However, following continued refusals by Wyndham and an expiry of Choice’s offer on March 8, the franchisor has decided to abandon the acquisition and withdraw its nomination of its director candidates for election.
Choice says it will now focus on its share buyback program of 6.8 million shares.
What they said
In a statement, Choice said: “While the support from Wyndham stockholders tendering into the exchange offer was significant considering the number of investors structurally prevented from participating at this stage, it was not sufficient for Choice to conclude – particularly when taking into account the Wyndham board's obvious continuing disinterest in a combination – that a path towards a transaction is available at this time. As such, Choice has decided not to extend the exchange offer and is withdrawing its slate. Choice intends to continue focusing on its standalone strategy, which the company is confident will create significant long-term value for its stockholders and franchisees.
Separately, Stephen Holmes, Wyndham chair said: “The Wyndham board is pleased that Choice has ended its hostile pursuit and proxy contest, following the expiration of its unsolicited exchange offer. We are confident in Wyndham’s standalone strategy and growth prospects under the leadership of our proven management team.
Geoff Ballotti, president & chief executive officer of Wyndham added: “Wyndham is focused on moving ahead with the execution of our strategic plan, building on our success and generating meaningful value. We look forward to doing so without the unnecessary distraction of this situation and disruption to our business. We would like to thank our shareholders and franchisees for their continued support and our team members for their dedication and focus throughout this process.”