A cash element has been introduced to the proposed merger of Kennedy Wilson Europe Real Estate (KWE) and Kennedy Wilson Holdings. KWE is managed by Kennedy Wilson Investment Management, a wholly owned subsidiary of Kennedy Wilson Holdings, a New York-listed real estate and services business with assets of around £11bn.
Under the original scheme each KWE shareholder would receive 0.667 new Kennedy Wilson shares for each KWE share, but under a revised offer KWE shareholders now have the option to receive the original offer or 0.3854 new shares and 300p in cash, 250p of which will be paid by KWE through a special dividend. Using a Kennedy Wilson share price of $19.55 and an exchange rate of $1.2656, the original offer values each share at around 1,030p, while under the new offer this rises to 1,145p, and KWE's share price jumped over 9 per cent to 1,123p on the revised offer.
