Royal Caribbean Reportedly Pursues Majority Stake in Sandals Resorts
The potential transaction would value the resort chain at $6 billion, but no official agreement had been reached and the talks could still collapse.
Royal Caribbean was on track to acquire a majority stake in Sandals Resorts International through a transaction valuing the resort chain at $6 billion, according to a report on the negotiations.
People familiar with the matter said the family of founder Gordon Butch Stewart would retain equity in Sandals, while Royal Caribbean would become the controlling shareholder. The report said the companies had not finalized an agreement and warned that the discussions could fall apart.
Royal Caribbean Group shares closed at $250.25 on September 21. By 3:20 p.m. on September 22, the price had declined to $232.31. Market data cited in connection with the share movement indicated that the stock reached a 52-week low.
The Cruise Lines International Association estimates that cruises represent 2% of the global travel and tourism industry.
