Theboards of directors of AppleHospitality REIT Inc. and AppleREIT Ten Inc. have approved a definitive merger agreement, whichwill lead to the creation of one of the largest select service lodging REITs inthe industry.
Theimplied transaction value is $1.3 billion, according to an April 14 newsrelease.
Thepro forma combined company will have an enterprise value of approximately $5.7billion and a total equity market capitalization of about $4.4 billion, basedon the 20-day volume weighted average price of Apple Hospitality's commonshares ending April 12.
WellsFargo Securities/Eastdil Secured and Robert W. Baird & Co. Inc. are servingas financial advisers and Hogan Lovells US LLP is serving as legal counsel toApple Hospitality.
CitigroupGlobal Markets Inc. is serving as financial adviser to the special committee ofApple Ten's board of directors and McGuireWoods LLP is serving as legal counselto Apple Ten and the special committee.
More details to follow…