STAY - Extended Stay started talks with Starwood in 2017 explored alternatives

Extended Stay America (STAY) started talks with Starwood Capital Group four years ago for a potential transaction, according to its proxy statement for the shareholder vote on its proposed $6B acquisition by a joint venture of Starwood and Blackstone (BX).Eventually, the companies agreed on a $19.50 per share cash transaction. They announced the deal on March 14.During the past four years, STAY conducted numerous strategic reviews to evaluate a number of alternatives.The company said no credible bidders emerged during the process other than Blackstone and Starwood.STAY had explored an OpCo/PropCo transaction "extensively" in 2018-2019, but decided the yield was "unattractive and uncertain risk-adjusted value creation vs. whole company strategy."In the end, the boards believe the transaction with Blackstone and Starwood "delivers a meaningful premium to our shareholders as compared to our stand-alone plan, without the execution and market risks."The date for the shareholder vote on the transaction has not yet

For further details see:

Extended Stay started talks with Starwood in 2017, explored alternatives