Real estate investment firm Kennedy Wilson said on Tuesday it will be acquired by a consortium led by its chief executive William McMorrow and Fairfax Financial for about $1.5 billion (€1.27 billion).
The consortium will acquire all remaining shares for $10.90 each in cash, a sweetened offer from the previous $10.25 in November, representing a 10.2 per cent premium to the stock’s last close.
Kennedy Wilson shares rose 10.1 per cent to $10.9 in premarket trading.
In November, the consortium said that private ownership would reduce the cost and administrative burden of being publicly listed, allowing management to focus on its strategy.
Once the deal closes, which is anticipated in the second quarter of 2026, Canadian billionaire Prem Watsa’s Fairfax will have a majority economic interest in Kennedy Wilson, while the CEO-led KW Management Group will retain operational control.
[ Kennedy Wilson’s Irish chief building for the long termOpens in new window ]
Kennedy Wilson owns a number of properties in Ireland, having first invested here about 13 years ago. According to documents filed with the Securities and Exchange Commission in the United States, this includes a 50 per cent share of 13 residential rental property schemes in Dublin and Cork.
These investments include Capital Dock and Clancy Quay in Dublin and the Elysian in Cork.
It also has a number of investments in commercial property here, including the Stillorgan Shopping Centre.
As of September 30th last, its investments in Ireland stood at $488.6 million with mortgage debt of $215.7 million. Some 20 per cent of Kennedy Wilson’s annual net operating income of $434 million was generated in Ireland, according to third quarter results.
Kennedy Wilson previously owned the Shelbourne Hotel in Dublin for 10 years. It sold the five-star property in 2024 for a reported €260 million, netting a $99 million gain in the process.
Fairfax and Kennedy Wilson were also among the investors who put €1.1 billion into Bank of Ireland in July 2011 for a combined shareholding of 34.9 per cent. This investment meant Bank of Ireland did not become majority owned by the State post the 2008 banking crash.
Fairfax also later became an investor in Irish insurer FBD via convertible bonds.
Latham & Watkins and Ropes & Gray are serving as legal advisers to Kennedy Wilson for the transaction. – additional reporting by Reuters
