- The consortium will purchase all outstanding shares for $10.90 per share.
- Fairfax has committed up to $1.65 billion to fund the transaction.
- The deal is projected to close in the second quarter of 2026.
Shares of Kennedy-Wilson Holdings, Inc (KW) jumped 11% in pre-market trading on Tuesday after the company announced that it has agreed to be acquired in an all-cash deal by a consortium led by Chairman and CEO William McMorrow alongside Fairfax Financial Holdings.
The consortium will purchase all outstanding shares for $10.90 per share, a 46% premium to the company’s share price on Nov. 4, 2025, the last traded price ahead of a publicly disclosed acquisition proposal.
Fairfax has committed up to $1.65 billion to fund the transaction, including the cash purchase and redemption of certain preferred shares.
Fairfax To Hold Majority Stake
After the transaction closes, KW Management Group, led by William McMorrow, will retain operational control and continue overseeing the company and its subsidiaries. Fairfax is expected to hold a majority economic stake immediately following completion.
The deal is projected to close in the second quarter of 2026, pending customary conditions such as approval from a majority of the company’s voting shareholders, support from unaffiliated Kennedy Wilson equity holders, required regulatory clearances, and the expiration of applicable waiting periods.
Under the merger agreement, Kennedy Wilson’s board may continue declaring up to two regular quarterly dividends of as much as $0.12 per share until shareholder approvals are secured. Once finalized, Kennedy Wilson’s common stock will stop trading on the New York Stock Exchange.
Last November, Kennedy-Wilson acquired the apartment living platform of Toll Brothers in a transaction valued at $347 million. The deal includes Toll Brothers’ in-house development team along with interests in completed properties and projects under development. Kennedy Wilson expects to invest about $90 million, with the balance funded through third-party fee-bearing equity.
The acquisition is set to add more than $5 billion in assets under management, including $2.2 billion across 18 apartment and student housing properties and $3 billion tied to 20 properties it will manage for Toll Brothers. The company will also gain a 29-site development pipeline worth roughly $3.6 billion.
How Did Stocktwits Users React?
Despite the gains, retail sentiment on Stocktwits turned 'bearish' from 'neutral' a day earlier, amid 'high' message volumes.
Year-to-date, KW shares have gained over 12%.
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