Marriott International, Inc. (MAR/NYSE) said today that it has successfully completed its tender offer to purchase all outstanding public shares of common stock of ExecuStay Corporation (EXEC/NASDAQ) for $14.00 per share. ExecuStay Corporation is the second largest provider of leased corporate apartments in the United States.
As of the expiration of the tender offer, 3,603,504 shares of ExecuStay stock had been validly tendered and not withdrawn in the offer (including those shares tendered pursuant to guaranteed delivery procedures), all of which will be accepted by Marriott. Marriott International expects to pay for the shares tomorrow, Friday, February 19, 1999.
In addition, prior to the commencement of the tender offer, Marriott entered into agreements with certain stockholders of ExecuStay Corporation who have agreed not to participate in the tender offer and to exchange an aggregate of 4,565,890 shares of ExecuStay common stock for shares of ExecuStay non-voting preferred stock after the close of the tender offer. In the merger, the ExecuStay non-voting preferred stock will be exchanged for shares of Marriott International, Inc. common stock. After giving effect to this planned transaction, the 3,603,504 shares of ExecuStay common stock tendered will represent approximately 98.2% of the outstanding shares of ExecuStay common stock. As a result of the tender offer, ExecuStay Corporation will merge into a subsidiary of Marriott International using the short-form procedures of the Maryland General Corporate Law.
Marriott expects to complete the merger by the end of March.