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Bass buys Holiday Inn of Holiday Corp.

Bass buys Holiday Inn of Holiday Corp

Bass PLC of Britain, brewer of Bass Ale and Guinness products, announced the purchase of the Holiday Inn hotel chain from Holiday Corp. for $2.23 billion or about $84 per share.

The purchase will include nearly 1,400 hotels worldwide, the Holiday Inn trademark, as well as Embassy Suites, Hampton Inn and Homewood Suites hotels.

Sources at Bass reported that the brewing and entertainment company required $1.6 billion in new financing for the transaction. The purchasing price of the deal resulted in the issuing of $125 million in new stock for Bass plus the refinancing of $2.5 billion of Holiday Corp. debts.

Bass sources added that each share of previously owned Holiday stock will be converted into a one-quarter share of Bass stock.

The sale of the largest hotel chain in the world, including 266,000 rooms, was reported to be tax-free.
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Title Annotation:Bass PLC of Britain
Publication:Modern Brewery Age
Date:Sep 4, 1989
Words:152
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