ILG shareholders approve $4.7B Marriott Vacations merger

The combined company will own over 100 timeshare properties

TRD New York /
Aug.August 28, 2018 06:53 PM

Stephen Weisz and The Strand Hotel at 33 West 37th Street (Credit: Marriott Vacations Worldwide and Loving New York)

ILG shareholders approved a buyout offer from rival Marriott Vacations, clearing the way for a $4.7 billion merger that would create the world’s largest timeshare operator.

A total of 97.9 million votes were cast in favor of the merger, according to a filing with the Securities and Exchange Commission on Tuesday. Only 112,943 votes were cast against the proposal. Holders of 99 percent of ILG shares were present at the special stockholder meeting.

Marriott had already been raising funds to pay for the acquisition. The company’s offer was $14.75 in cash and 0.165 of Marriott Vacations stock for each ILG share. Marriott plans to pay for the cash portion of the acquisition by raising funds through a $750 million senior note offering and drawing from a $900 million credit facility.

Before the Marriott offer, activist investors had been pushing Miami-based ILG to strike a deal with a rival. Investment adviser FrontFour Capital, which owns a 2 percent stake in the company, previously sent a letter to the ILG board, warning that it will review its options if the board declined a Marriott bid.

“The strong endorsement of our stockholders reaffirms our belief that this combination provides them with immediate and compelling cash value and the opportunity to meaningfully participate in the long-term growth potential of the combined company,” said ILG President and CEO Craig Nash.

The combined companies will have revenue of nearly $3 billion. Its portfolio will also cover 108 properties under the Westin, Ritz-Carlton, St. Regis, Hyatt and Sheraton brands. Its assets include the Strand Hotel at 33 West 37th Street, which Marriott bought for $158.5 million in November. The deal is expected to close later this week, according to Marriott.

Related Articles

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

WeWork’s side businesses are fizzling

Thor Equities' Joe Sitt and a closeup of 545 Madison Avenue (Credit: Google Maps)

Thor Equities loses 545 Madison Avenue

Daily Digest Thursday

Legislation introduced to protect tenants in ‘keyless’ buildings, Compass pushes back against WeWork comparison: Daily digest

Ben Carson on how Opportunity Zones are unlike red and black ants: TRD Miami Showcase & Forum

32BJ SEIU President Kyle Bragg (Credit: Facebook, iStock)

32BJ expects fight with real estate industry over contract renewal

South Florida developers riff on the shift from condos to rentals: TRD Miami Showcase & Forum