: Hersha Hospitality stock soars after buyout deal at 59% premium with KSL Capital
Shares of Hersha Hospitality Trust HT soared 56.7% toward an eight-month high in premarket trading Monday, after the real estate investment trust focused on the hospitality sector announced an agreement to be acquired by private equity firm KSL Capital Partners LLC in a cash deal valued at $1.4 billion. Under terms of the deal, KSL will pay $10 in cash for each Hersha share outstanding, which represents a 59.2% premium to Friday’s closing price of $6.28. the deal is expected to close in the fourth quarter of 2023. “This transaction provides our shareholders with immediate and certain value at a substantial premium to our public valuation,” said Hersha Executive Chairman Jay Shah. “Following a multi-year comprehensive review by the independent Transaction Committee of Hersha’s Board of Trustees, the Board and management team are confident this step will allow us to deliver value for our shareholders while refocusing on growing the business over a longer period of time.” Hersha’s stock had dropped 26.3% year to date through Friday, while the S&P 500 SPX had gained 14.85.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.