Any CHIP unit holders satisfied with 1.19 Royal Host units out there????
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www2.cdn-news.com
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JUNE 8, 1999 Royal Host Confident in Offer to CHIP TORONTO, ONTARIO--
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Royal Host Real Estate Investment Trust (Royal Host REIT) today announced it is confident that it's offer to purchase 100 percent of the outstanding units of Canadian Hotel Income Properties (CHIP) will be accepted by unitholders. "It's a fair and equitable offer and I'm sure once CHIP unitholders have reviewed the circular they will see all the benefits of the offer," said R.B. Royer, President and CEO Royal Host REIT following the company's annual general meeting in Toronto. "The offer provides an attractive premium to CHIP unitholders and will enable them, through their Royal Host units, to participate in the creation of a larger, stronger and more diversified Canadian hotel REIT." The Royal Host offer complies with all regulatory requirements, added Royer. The combination of Royal Host and CHIP will benefit unitholders of both REITs. In addition to the premium offered, CHIP unitholders will have the opportunity to share in the benefits that will accrue to the unitholders of the combined entities that include: - increased distributable cash due to significant operational savings and synergies - enhanced critical mass and market presence - increased liquidity and access to capital - greater diversification and stability - experienced management team with a significant equity interest. Royal Host mailed its formal offer on May 31, 1999 to registered unitholders of CHIP to acquire all of the outstanding trust units of CHIP. The offer is on the basis of 1.19 trust units of Royal Host for each CHIP trust unit and expires at 8:00 p.m. (Calgary time) on Thursday, June 24, 1999. It is conditional upon not less than 66 2/3 percent of the outstanding CHIP trust units (on a fully-diluted basis) being tendered under the offer. The offer is also conditional upon obtaining all required regulatory and stock exchange approvals and the waiver or cease trading of the unitholder rights plan adopted by the CHIP Trustees after the announcement of the offer. The offer represents a premium of 11 percent to CHIP unitholders, based on the 20-day weighted average trading price of the CHIP units prior to Royal Host's announcement of its intention to make the offer. Royal Host is a closed-end real estate investment trust (REIT) with a national portfolio of 36 hotels with over 4,400 guest rooms primarily in the upper-mid-market and upscale segments. Royal Host owns the Travelodge Master Franchise in Canada; provides hotel and resort management services for the portfolio and to third party properties, markets vacation intervals in hotels, resorts and luxury houseboats, and operates a facility for customers to trade and bank prepaid vacation weeks. Royal Host maximizes earnings while minimizing risk for its unitholders through efficient operations, strong marketing and a focus on providing travellers with superior accommodations and travel experiences. Royal Host units are traded on The Toronto Stock Exchange (RYL.UN). Statements contained in this news release regarding expected financial results and other planned events are forward-looking statements. As a result, they are subject to uncertainties and risks, including the ability of Royal Host to successfully implement its strategies including: the acquisition of CHIP; the successful integration of this acquisition into Royal Host; and the subsequent realization of expected synergies. Each of these events and conditions affecting real estate investment and the hotel industry generally may be impacted, among other things, by economic, competitive or regulatory conditions. -30- |
