The proposal implies a total equity value for Wyndham of approximately $7.8 billion on a fully diluted basis. With the assumption of Wyndham's net debt, the proposed transaction is valued at roughly $9.8 billion.

However, Wyndham has decided to disengage from further discussions with Choice following nearly six months of dialogue. As a result, Choice decided to make its latest proposal public.

According to Choice's proposal, Wyndham shareholders would have received $90.00 per share, comprising $49.50 in cash and 0.324 shares of Choice common stock for each Wyndham share they hold.

Choice's offer also presented a substantial 26% premium compared to Wyndham's 30-day volume-weighted average closing price that concluded on October 16, 2023. 

It also constitutes an 11% premium over Wyndham's 52-week high and an impressive 30% premium in relation to Wyndham's most recent closing price.

In April 2023, Choice sent its initial letter to Wyndham regarding a potential transaction, proposing to acquire Wyndham for $80.00 per share, comprising 40% cash and 60% Choice stock. 

"Wyndham legacy shareholders stand to benefit from over $500 million of value creation from the realization of cost synergies, in addition to the compelling premium offered and participation in the multiple expansion of the Wyndham business," mentioned Choice's most recent letter sent to Wyndham's Board of Directors, dated August 21, 2023. 

Price Action: WH shares are trading higher by 12.66% to $77.85, while CHH shares are trading lower by 6.33% to $117.00 in premarket on the last check Tuesday.

Photo Via Company