Kennedy Wilson has increased its bid for the takeover of Kennedy Wilson Europe Real Estate from 1,030p per share to 1,145p per share.
Under the original offer, made in April, for an all-share merger of the two companies, Kennedy Wilson proposed that each KWE share be swapped for 0.667 new KW shares. This valued each share at 1,030p.
Under the new proposal, which is available alongside the original offer, each KWE share would be worth 0.3854 KW shares, 300p in cash and an additional 250p in cash by means of a special dividend. This would value each share at 1,145p.
If all KWE shareholders vote to accept the new offer, they will own approximately 24% of the combined group, with KW shareholders owning 76%.
KW said it has been notified that KWE shareholders Quantum Strategic Partners and Franklin Templeton Institutional intend to vote in favour of the merger. They represent 21.8% of KWE’s existing ordinary share capital, or 28.6% of the KWE shares entitled to a vote.
Alongside other smaller holders, this means the merger has the support of 36.0% of KWE shares.
Among KW shareholders, notification of intent to vote in favour has been received in respect of approximately 31.4% of KW’s outstanding shares of common stock.
KW and KWE expect that the scheme will become effective in the fourth quarter of 2017.
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