The Spokane, Washington-based Red Lion Hotels Corp. (RLH) said on Monday that it has received an unsolicited, non-binding and conditional offer from Columbia Pacific Opportunity Fund, LP or Columbia to take the company private.
Columbia and various related entities submitted an offer to acquire all of the outstanding shares of Red Lion at cash price of $9.50 per share, representing a 35% premium to Friday's closing price of $7.05.
Red Lion Hotels said its Board, in consultation with its financial and legal advisors, will evaluate the preliminary indication of interest carefully and promptly.
Columbia, which currently holds 2,313,108 shares or 12.7% of Red Lion Hotels, disclosed in a regulatory filing that it began exploratory talks with the management of Red Lion Hotels in April regarding a possible take over transaction.
Columbia said that it was prepared to proceed immediately with discussions and due diligence review in anticipation of signing a definitive merger agreement upon the execution of a confidentiality agreement.
RLH is trading up $1.08 or 15.32% at $8.13 on a volume of 105 thousand shares.
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