By Dave Sebastian
Blackstone Group Inc. and Starwood Capital Group have agreed to increase their offer to buy hotel owner and operator Extended Stay America Inc. to $20.50 per paired share.
The joint venture between Blackstone and Starwood in March agreed to buy the midprice hotel chain for $19.50 per paired share, valuing it at $6 billion. The companies Tuesday said the raised price represents a 21% premium over Extended Stay's March 12 closing price of $16.94, which was the last trading day before the agreement was struck.
The companies expect the deal to close June 16, pending shareholder approval.
Extended Stay said its board plans to declare a special cash dividend of $1.75 a share of its common stock payable before the effective time of the proposed combination.
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(END) Dow Jones Newswires