Kennedy Wilson (NYSE:KW) surged 9% after announcing it had reached a definitive agreement to be taken private in an all-cash deal at a substantial premium to its prior closing price.
The real estate investment manager said it will be acquired for $10.90 per share in cash by a consortium led by Chairman and CEO William McMorrow, alongside other senior executives and Fairfax Financial Holdings (TSX:FFH). The offer represents a 46% premium to the stock’s November 4, 2025 closing price, the last trading day before the investor group’s proposal became public.
Kennedy Wilson shares had finished the previous session at $9.89 before climbing sharply on news of the agreement. The transaction assigns a valuation meaningfully above the company’s recent market levels.
The deal received approval from the Board of Directors after a unanimous recommendation from a special committee composed of independent directors. Fairfax has committed up to $1.65 billion in financing to support the acquisition.
Once the transaction closes—anticipated in the second quarter of 2026—McMorrow and the management-led group will retain day-to-day control of the business, while Fairfax is expected to hold a majority economic stake. Completion remains subject to shareholder and regulatory approvals.
As part of the agreement, Kennedy Wilson may continue paying up to two quarterly dividends of $0.12 per share before shareholder approval is secured. Following completion, the company’s shares will be removed from trading on the NYSE.