Las Vegas-based timeshare company Diamond Resorts International announced Wednesday it is being acquired by Apollo Global Management in an all-cash deal for about US$2.2 billion (US$30.25 per share), a 26% premium from its June 28 closing share price.
With some 420 vacation destinations in 35 countries, Diamond Resorts is realizing a 58% premium over its February 24 stock price, the day it started working with investment bank Centerview Partners to consider strategic alternatives.
There is no financing condition to completion of the tender offer and the merger, which is expected to close in a couple of months. Financing is being provided by Barclays, Royal Bank of Canada and Jefferies. PSP Investments Credit USS is also providing debt financing commitments.
If completed, the transaction will result in the company becoming privately held.