Apollo, Great Wolf Agree on Sweetened $6.75-Share Offer
Apollo Global also will assume $570 million in debt and $34 million in cash on the resort operator’s books, said Carrie Bloom, an outside spokeswoman for Great Wolf at Sard Verbinnen & Co., today.
With the sweetened offer, Great Wolf said it will no longer consider an unsolicited $6.25 per-share bid made by KSL Capital Partners LLC. Great Wolf owns, manages and licenses 11 resorts which cater to families and feature indoor water parks, suite- style rooms, restaurants, spas and arcades.
Phone calls and e-mails to KSL Capital by Bloomberg News today weren’t returned.
Holders have until April 20 at midnight to tender their shares, Great Wolf and Apollo Global (APOL) said yesterday in a statement. Great Wolf also agreed to boost its termination fee to $9 million from $7 million, the statement said.
Apollo Global made an earlier bid for Great Wolf on March 13, offering $5 a share, about a 19 percent premium from the company’s closing stock price the day before. On March 15, the company was sued by investors who said the $703 million offer, which included debt, undervalued the company.
Denver-based KSL Capital made its offer on April 4.
The Madison, Wisconsin-based Great Wolf opened its first lodge in Wisconsin Dells, Wisconsin, in 1997. The chain has expanded into eight other U.S. states and Canada since then. New York-based private-equity firm Apollo Global went public last year.
Shares of Great Wolf rose 88 cents to $6.58 in Nasdaq trading on April 5. The stock has more than doubled year to date. Apollo Global rose 22 cents to $14.35 on April 5. The stock is up 16 percent year to date.
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