Consortium that Includes Saudi Billionaire Price Alwaleed bin Talal
|TORONTO, April 18, 2006 - Fairmont Hotels & Resorts Inc. ("Fairmont"
or the "Company") (TSX/NYSE: FHR) today announced that its shareholders
approved the acquisition of all of the Company's outstanding common shares
by a company (the "Purchaser") owned by affiliates of Kingdom Hotels International
and Colony Capital at its Special Meeting of Shareholders held this morning.
Shareholders representing more than 70 percent of all shares outstanding
and approximately 98 percent of all votes cast, voted in favor of the transaction
involving the Company and the Purchaser, exceeding the required 66 2/3%.
The closing of the transactions is subject to court approval in Canada as well as the satisfaction or waiver of the other conditions specified in the Acquisition Agreement. The Company will seek final court approval on Thursday, April 20th. If court approval is obtained, the transaction is expected to close in early May, after which all Fairmont shareholders will receive US$45.00 in cash for each Fairmont common share.
Fairmont announced on April 14 that a group holding approximately US$145,000,000 of its US$270,000,000 principal amount 3.75% Convertible Senior Notes due 2023 (the "Notes") plans to oppose the transaction at the April 20 court hearing. Fairmont believes that the position of the Noteholders is without merit. However, if the opposition of this group of Noteholders were successful, no assurance could be given as to whether the closing of the transaction would occur or as to the timing thereof.
About Fairmont Hotels & Resorts Inc.
Fairmont Hotels & Resorts Inc.
|Also See:||Prior to Acquisition by Kingdom Hotels and Colony Capital, Fairmont Reports 2005 Year End Net income of $167.5 million Compared to the Prior Year's Net Income of $155.8 million / February 2006|
|Fairmont Announces Agreement To Be Acquired By Kingdom Hotels And Colony Capital; Fairmont and Raffles to Combine, Creating a US$5.5 Billion Global Luxury Hotel Leader / January 2006|