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Caisse group to buy Legacy Hotels for C$2.5 billion

TORONTO
Thu Jul 12, 2007 9:48pm EDT

TORONTO (Reuters) - Legacy Hotels REIT LGY_u.TO said on Thursday it agreed to be acquired in a C$2.5 billion ($2.4 billion) all-cash deal, including debt, by a partnership that includes Caisse de depot et placement du Quebec.

According to Legacy, the price of C$12.60 a unit represents a 20 percent premium over its 30-day average price on the Toronto Stock Exchange before it said on March 1 that it was considering a sale of the business.

Legacy, the owner famed hotels such as the Fairmont Royal York in Toronto and Quebec City's Chateau Frontenac, said its trustees have unanimously approved the deal and recommended that unitholders tender to the offer.

The buyers of Legacy, Canada's biggest lodging real-estate investment trust, are LGY Acquisition LP, which is a limited partnership formed by Cadbridge Investors LP and InnVest REIT. Cadbridge itself is a limited partnership formed by Cadim, a division of Caisse de depot et placement du Quebec, and Westmont Hospitality Group.

Units of Legacy finished 6 Canadian cents higher at C$12.00 on the Toronto Stock Exchange.

($1=$1.05 Canadian)


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