Blackstone And Starwood Capital Increase Offer To Buy Extended Stay America

(RTTNews) - Blackstone Real Estate Partners and Starwood Capital Group have increased their offer to acquire Extended Stay America Inc. (STAY) to $20.50 in cash per paired share.

Under the terms of the merger agreement, as amended, a 50/50 joint venture between funds managed by Blackstone and Starwood Capital will now pay STAY, which consists of Extended Stay America, Inc. or "ESA" and its paired-share REIT, ESH Hospitality, in an additional $1.00 per paired share in cash for a total consideration of $20.50 per paired share in cash.

The company's boards of directors both unanimously recommend that STAY shareholders vote to approve the transaction at the reconvened Special Meetings of Shareholders.

The company shareholders who hold their paired shares of common stock on the record date for the special cash dividend and through the effective time of the merger will be entitled to receive an aggregate of $20.50 in cash, consisting of the $1.75 special cash dividend and merger consideration which, as reduced by the $1.75 special cash dividend, is comprised of $10.40 per share of ESA common stock and $8.35 per share of Class B common stock of ESH.