Sunterra Gets $315M Offer
GlobeSt is reporting that an affiliate of Diamond Resorts has commenced its tender offer for all of Sunterra Corp.’s issued and outstanding common stock. At $16 per share, acquiring all outstanding shares would cost the company $315.5 million. The total value of the deal, including the assumption of $375 million of existing Sunterra debt, is estimated at $700 million. The per-share offer price represents a 35% premium to the share price on March 8.
Sunterra is one of the world’s largest vacation ownership companies with more than 326,000 owner families and 96 branded or affiliated vacation ownership resorts throughout the continental United States and Hawaii, Canada, Europe, the Caribbean and Mexico. Diamond Resorts properties include Polo Towers, the first purpose-built high-rise vacation ownership property in the industry.