Legacy Hotels Provides Update Concerning Its Review Of Strategic Alternatives
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Legacy Hotels Provides Update Concerning Its Review Of Strategic Alternatives
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Category: North America & West Indies / Carribean islands
This is a press release selected by our editorial committee and published online for free on 2007-06-19
Legacy Hotels Real Estate Investment Trust (“Legacy” or the
“Trust”) (TSX: LGY.UN) today, at the request of the TSX, gave an update of its review of
strategic alternatives. Legacy stated that it is continuing its review of all strategic alternatives,
including a sale of the Trust. The Trust also confirmed that it is in discussions with investment
groups regarding the possible acquisition of the Trust.
In the process of reviewing its strategic alternatives, the Board of Trustees of Legacy has sought
interest over the past three months from a wide variety of parties with respect to the Trust. In the
context of this process, the Board has received non-binding offers in the range of $12.60 per unit.
That price represents a premium of approximately 14% over the trading price immediately prior
to the announcement on March 1, 2007 of the Trust’s strategic alternative review process.
There can be no assurance that ongoing negotiations will result in a binding offer being made for
the Trust. The Board of Trustees may ultimately determine that its current business plan or the
adoption of strategic alternatives other than the sale of the Trust is the best means to build and
deliver unit holder value. Fairmont Hotels and Resorts Inc., Legacy’s largest unit holder, is
continuing to support the strategic review process.
Forward Looking Information
This news release contains forward-looking information related to, but not limited to, Legacy
operations, anticipated financial performance, business prospects and strategies. Forwardlooking
information typically contains statements with words such as “anticipate”, “believe”,
“expect”, “plan” or similar words suggesting future outcomes. Such forward-looking statements
are subject to risks, uncertainties and other factors, which could cause actual results to differ
materially from future results expressed, projected or implied by such forward-looking
statements. Such factors include, but are not limited to economic, competitive and lodging
industry conditions. Please refer to Legacy’s Annual Information Form, dated March 27, 2007,
which can be found on the Canadian Securities Administrators’ System for Electronic Document
Analysis and Retrieval (“SEDAR”) website at www.sedar.com, for a list of the risks inherent in
the activities of the Trust. All statements in this news release are qualified by such cautionary
statements. These statements are made as of the date of this news release and except as required
by applicable law, Legacy disclaims any intention or obligation to update or revise any such
forward-looking statements, whether as a result of new information, future events or otherwise.
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