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U.S.-based real estate investment manager Kennedy-Wilson has agreed to be taken private in a deal valued at about USD 1.5 billion by a consortium led by its Chief Executive Officer William McMorrow and Canada's Fairfax Financial Holdings. The group will acquire all outstanding shares for USD 10.90 per share in cash, an improved offer from the earlier USD 10.25 proposal made in November. The revised bid represents a 10.2 per cent premium to the stock's last closing price. Shares of Kennedy-Wilson rose about 10 per cent in premarket trading following the announcement. The transaction is expected to close in the second quarter of 2026, after which Fairfax will hold a majority economic interest, while the CEO-led management group will retain operational control.
Real estate investment firm Kennedy-Wilson said on Tuesday it has agreed to be acquired in a take-private transaction valued at approximately USD 1.5 billion by a consortium led by its Chief Executive Officer William McMorrow and Canada-based Fairfax Financial Holdings. Advertisement
Under the terms of the agreement, the consortium will purchase all remaining outstanding shares of Kennedy-Wilson for USD 10.90 per share in cash. The revised offer represents an increase from the earlier USD 10.25 per share proposal made in November and reflects a premium of about 10.2 per cent to the company's most recent closing price.
Following the announcement, Kennedy-Wilson's shares rose 10.1 per cent to USD 10.90 in premarket trading, indicating investor approval of the improved bid.
When the initial proposal was made in November, the consortium had said that taking the company private would reduce the costs and administrative burdens associated with maintaining a public listing. Private ownership, it argued, would enable management to focus more closely on long-term strategic priorities and operational execution without the pressures of quarterly reporting requirements.
The transaction is expected to close in the second quarter of 2026, subject to customary closing conditions and shareholder approvals. Upon completion, Fairfax Financial, led by Canadian billionaire Prem Watsa, will hold a majority economic interest in Kennedy-Wilson. Meanwhile, the CEO-led KW Management Group will retain operational control of the business, ensuring continuity in leadership and strategy.
Kennedy-Wilson is known for its investments in real estate assets and real estate-related debt across the United States, Europe and Asia. The company manages capital on behalf of institutional investors and focuses on multifamily housing, office, retail and credit investments.
The deal reflects a broader trend of public companies opting for private ownership amid volatile equity markets and regulatory complexities. For Fairfax, the acquisition deepens its exposure to real estate investment management, while aligning with its strategy of backing long-term asset platforms.
Legal advisory firms Latham & Watkins and Ropes & Gray are representing Kennedy-Wilson in connection with the transaction.
If completed as planned, the buyout will mark a significant shift in Kennedy-Wilson's ownership structure, positioning it for its next phase of growth under a private framework supported by long-term capital.
Source - Reuters
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