Kennedy-Wilson Holdings Inc. (KW) saw its stock price surge 28.25% in a significant rally following the announcement of a buyout proposal from its CEO and Chairman, William J. McMorrow, in partnership with Fairfax Financial Holdings Limited. The proposal, which aims to take the company private, has sparked investor enthusiasm and driven the stock to new heights.
The consortium, which already owns approximately 31% of Kennedy-Wilson's outstanding common stock, has offered to acquire all remaining shares at $10.25 per share in cash. This represents a premium of about 37% over the company's closing price before the announcement. The proposal values the real estate company at around $1.5 billion, signaling a strong vote of confidence in its future prospects.
In response to the offer, Kennedy-Wilson's board has formed a special committee of independent directors to evaluate the proposal. The consortium has expressed its intention to negotiate terms swiftly, aiming to streamline the company's operations by removing the administrative burdens associated with public reporting. This move could potentially allow Kennedy-Wilson to focus more intensely on executing its business plan, which may have contributed to the positive market reaction.
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