Landry’s accepts Fertitta’s buyout offer
Landry’s Restaurants on Tuesday announced it agreed to a merger with Tilman Fertitta, chairman, president and CEO of the Houston-based restaurant and hospitality company.
Fertitta will acquire all of the company’s outstanding common stock that he doesn’t already hold at USD 14.75 (EUR 10) cash per share.
The deal is valued at about USD 1.2 billion (EUR 819 million).
The offer price represents a premium of approximately 37 percent over the closing share price of Landry’s common stock on 2 November, the last trading date before the transaction. At that time, Fertitta owned approximately 55.1 percent of Landry’s stock.
Under the agreement, there is a “go-shop” provision where a Landry’s committee will continue to solicit alternative acquisition proposals until 17 December or until the company’s debt refinancing is complete. If the company approves another proposal during this period, it will be obligated to pay a USD 2.4 million (EUR 1.6 million) break-up fee to Fertitta.
The transaction is expected to be complete in the first half of 2010.
Fetitta first proposed a buyout in January 2008. But the takeover bid was cancelled a year later due to conflict over the disclosure of information. Then the company launched a committee to explore other alternatives in September 2009.
Landry’s operates several restaurant chains, including Landry’s Seafood House, Charley’s Crab and The Chart House, and the Golden Nugget Hotel & Casino in Las Vegas and Laughlin, Nev.