Beverly Hills, CA-based Kennedy-Wilson Holdings, Inc. (KW) and Kennedy Wilson Europe Real Estate Plc (KWE) reached a merger agreement on the terms of a recommended all-share combination transaction. KWE will become a wholly-owned subsidiary of KW, creating a more than 400-property global platform with a market capitalization of roughly $4 billion and an enterprise value of approximately $8.2 billion.
Existing KW shareholders will own approximately 64% and former KWE shareholders will own roughly 36% of KW following completion of the transaction, which is expected to close during Q3 2017.
KW’s William J. McMorrow said, “This transaction represents one of the most significant milestones in our 40-year history. The enterprise will benefit from greater scale and improved liquidity, which will enhance our ability to generate attractive risk-adjusted returns for our shareholders.” He noted the company intends to increase its first quarterly dividend by roughly 12% upon completing the transaction.
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