Notable Mergers and Acquisitions of the Day 08/18: (HT) (EK) (IACI)

• Hersha Hospitality Trust (NYSE: HT) announced that as part of the Company’s portfolio repositioning and capital recycling program it has entered into definitive agreements to sell 18 properties to an affiliate of Starwood Capital Group for approximately $155 million, including the assumption of outstanding mortgage debt.
  
  From the release: "Any estimates that it is selling these hotels at a trailing 12 month net operating income capitalization rate of approximately 8.4% and a trailing 12 month Hotel EBITDA multiple of approximately 10.3 times. The sale of these non-core assets significantly improves the Company’s hotel operating metrics and further reduces the average age of the portfolio following the completion of the anticipated sale of the 18 non-core hotels to less than seven years old, while the average age of the non-core hotels to be sold approximates 11.5 years.
  
  
  For the second quarter ended June 30, 2011, Average Daily Rate (“ADR”) for the consolidated non-core hotels being sold (14 hotels) was $107.01, 32.2% less than the ADR for the remainder of the consolidated portfolio (53 hotels), which was $157.91. Hotel EBITDA margins of 34.4% for the consolidated non-core hotels being sold were approximately 810 basis points less than the Hotel EBITDA margins for the remainder of the consolidated portfolio, which were 42.5%. On a pro forma basis, adjusted to reflect the sale of the 14 consolidated non-core hotels, the Company’s second quarter consolidated RevPAR of $125.10 would have been approximately 18.2% higher than 2010 second quarter RevPAR, while Hotel EBITDA margin of 42.5% would represent approximately 240 basis points of margin expansion from the comparable period in 2010.
  
  Upon the sale of the 18 non-core hotels, the Company expects to generate net proceeds of approximately $54 million, reduce its consolidated mortgage debt by approximately $61.5 million and reduce its proportionate share of unconsolidated mortgage debt by approximately $18.3 million. The Company anticipates utilizing the net proceeds from these sales for further debt reduction and for general corporate purposes. The transaction is expected to close by the end of the fourth quarter of 2011 and is subject to the satisfaction of customary closing conditions, including the receipt of lender and franchisor consents."
  
  
• Eastman Kodak (NYSE: EK) shares are en fuego after hours Wednesday following reports the company is moving to sell 10 percent, or about 1,100 digital patents, of its patent portfolio.
  
  According to the Wall Street Journal, Kodak has retained Lazard to begin marketing the portfolio. A two-part auction will occur for the sale.
  
  Hoping to capitalize on a recent "patent bubble" (Nortel Networks sold patents at the end of June and last week Google (Nasdaq: GOOG) announced it will acquire Motorola Mobility (NYSE: MMI), largely for this intellectual property), Eastman is looking to sell to a strategic wireless industry company looking for more patent protection.
  
  Some question the move, as Eastman has struck lucrative deals with some of the patents its putting on the block, which may put the buyer at risk of lawsuits. Eastman derived $1.9 billion in 2008 through 2010 on the deals.
  
  Kodak will still be able to use the patents after the sale, but will no longer be able to litigate them.
  
  
• IAC/InterActiveCorp's (Nasdaq: IACI) Match.com reports its tender offer on the outstanding shares of Meetic S.A. is successful based on the results of the initial offer period.
  
  From the release: "The French Autorite des marches financiers (AMF) published today the results of the initial tender offer, which show that on the closing date of the initial offer period on August 11, 2011, 11,735,405 shares have been tendered to the offer, representing 51.05% of the share capital of Meetic, calculated on the basis of Meetic's share capital issued on July 29, 2011.
  
  The tendered shares include the 3,667,733 shares tendered by Mr. Marc Simoncini pursuant to his tender commitment entered into with Match on May 31, 2011. Upon the settlement of the tendered shares on August 29, 2011, Match will hold 17,829,739 shares, representing 77.55% of the share capital, calculated on the basis of Meetic's share capital issued on July 29, 2011."

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