Kennedy-Wilson Holdings Inc. (KW) stock surged 28.25% in a remarkable 24-hour rally following a buyout proposal from the company's CEO, William J. McMorrow, and Canadian insurance giant Fairfax Financial Holdings Limited. The proposal, which aims to take the real estate company private, has ignited investor interest and sent the stock soaring.
The consortium, which includes McMorrow, Fairfax Financial, and certain senior executive officers, has offered to acquire all outstanding shares of Kennedy-Wilson that they do not currently own for $10.25 per share in cash. This represents a substantial 37% premium over Tuesday's closing price of $7.47, valuing the company at approximately $1.5 billion. The proposal states that the transaction will be fully financed through available liquidity of certain consortium members, with no financing condition required.
In response to the proposal, Kennedy-Wilson's board has formed a special committee of independent directors to evaluate the offer. The consortium and its affiliates currently hold about 31% of the company's outstanding common stock, giving them a significant stake in the potential transaction. The group aims to swiftly negotiate terms and take the company private, allowing for continued execution of its business plan without the administrative burden of public reporting.
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