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Pebblebrook Hotel Trust, LaSalle Hotel Properties Tie-Up On Track to Close 30 November
Wednesday 10 October 2018

10 October 2018 - The pending merger of US-based lodging REIT Pebblebrook Hotel Trust (NYSE: PEB) and US-based LaSalle Hotel Properties (NYSE: LHO) is on schedule for a planned closing date of 30 November, the companies said.

Pebblebrook and LaSalle will each hold a special meeting of its shareholders on 27 November to approve Pebblebrook's proposed acquisition of LaSalle.

The companies' shareholders of record as of the close of business on October 23, 2018 will be entitled to vote at the applicable special meeting of shareholders.

Additionally, the companies announced that the joint proxy statement/prospectus, which was filed as part of a registration statement on form S-4 in connection with the proposed merger, is expected to be declared effective by the US Securities and Exchange Commission on 29 October.

Under the terms of the Pebblebrook-LaSalle Agreement, for each LaSalle common share owned, each LaSalle shareholder will receive either a fixed amount of USD 37.80 in cash or a fixed exchange ratio of 0.92 Pebblebrook common share.

Pebblebrook had been competing with Blackstone, which in May inked a deal with LaSalle under which Blackstone will acquire all outstanding common shares of beneficial interest of LaSalle for USD 33.50 per share in an all-cash transaction valued at USD 4.8bn.

The latest Pebblebrook offer provides LaSalle shareholders with the option to elect to receive for each LaSalle common share they own either a fixed amount of USD 37.80 in cash or a fixed exchange ratio of 0.92 Pebblebrook common share.

The transaction, which is subject to customary closing conditions, including regulatory approvals and approval by LaSalle shareholders and Pebblebrook shareholders, is expected to close in 4Q18.

The Pebblebrook board will remain unchanged. Following the close of the transaction, Pebblebrook will have a portfolio of 662 assets in or near 16 key urban markets, and will remain headquartered in Bethesda, MD.

Raymond James and BofA Merrill Lynch are acting as financial advisors and Hunton Andrews Kurth LLP is acting as legal counsel to Pebblebrook in connection with the proposed transaction.

Citigroup Global Markets Inc. and Goldman Sachs and Co. LLC are acting as financial advisors to LaSalle, and Goodwin Procter LLP and DLA Piper LLP are acting as legal counsel.
Details
Date Published: 10/10/2018
Target: LaSalle Hotel Properties
Country: USA
Deal Size: 4.8bn (USD)
Sector: Hotels/Restaurants/Casinos/Catering
Type: LBO
Financing: Cash
Status: Agreed
Vendor:
Buyer: Pebblebrook
Buyer Advisor: Raymond James , BofA Merrill Lynch , Hunton Andrews Kurth ,
Comment:
Pebblebrook still trying to outbid Blackstone

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