Host Hotels urges holders to reject Mackenzie's mini-tender offer
Host Hotels & Resorts has learned that MacKenzie Capital Management, LP made an unsolicited "mini tender" offer for up to 100,000 operating partnership units of Host Hotels & Resorts, L.P. at a price of $13.10 per OP Unit less cash distributions made by Host L.P. after July 31, 2019. This follows several earlier "mini tender" offers by the Purchaser launched in 2016, 2017 and 2018. Neither the company nor Host L.P. are in any way associated with the MacKenzie Offer, and holders of OP Units are under no obligation to take any action with respect to the MacKenzie Offer. After careful evaluation of the MacKenzie Offer, the company and Host L.P. recommend that the holders of OP Units reject this unsolicited offer. In making this recommendation, the company primarily considered that the offer price in the MacKenzie Offer is below the $15.78 per share closing stock price of the company's common stock on August 28, 2019. Although there is no trading market for the OP Units themselves, at any time holders of OP Units may request that the company redeem their OP Units and the Company, in its discretion, may either redeem the OP Units for cash or, in the alternative, issue 1.021494 shares of the company's common stock in exchange for each OP Unit, which shares may then be sold. Based on the closing price of the company's common stock on August 28, 2019 of $15.78, an OP Unitholder would receive shares with a market value of approximately $16.12 compared to the cash MacKenzie Offer of $13.10.