Nearly a year after shareholders of Bethesda, Md.-based real estate investment trust Condor Hospitality Trust approved the proposed acquisition merger of Condor by NHT Operating Partnership, the operating partnership of Canada-listed REIT NexPoint Hospitality Trust, Condor has terminated the merger agreement effective Sept. 18.
The deal, announced last July, would have had NHT acquire all of the outstanding equity interests of Condor and its operating partnership via a merger valued at $318 million.
Pursuant to its rights under the merger agreement, Condor reportedly terminated the merger agreement due to the failure of NHT's operating partnership to consummate the acquisition of the company and for material breaches of the merger agreement by NHT's operating partnership and its affiliates. No other reasons were made public.
Pursuant to the merger agreement, Condor is entitled to receive a termination fee of $11.9 million within five business days of its termination of the merger agreement. Condor continues to reserve all other rights and remedies.