Sunstone Hotel’s Merger with SHP OKd

Shareholders of Sunstone Hotel Investors Inc., a San Clemente real estate investment trust that owns 59 hotels, approved the company’s proposed merger with Westbrook Partners’ affiliate SHP Acquisition LLC for $880 million in cash and assumed debt.

In a press release Wednesday, Sunstone said 96.8% of the votes cast favored the acquisition, which represents 70.1% of its common and preferred shares.

Under the merger agreement, Sunstone common shareholders will receive $10.35 in cash a share, subject to possible adjustments to $10.37 or $10.38 a share. Adjustments are expected to be made within the next three business days.

As reported July 13, SHP Acquisition is an investor group led by an affiliate of Westbrook Partners and certain members of Sunstone’s senior management. Limited partners in Sunstone have the choice of taking cash or equity interest in the acquiring entity.

Sunstone stock closed at $10.19 a share Wednesday, up 6 cents from Tuesday’s close on the New York Stock Exchange.