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Private equity firm Apollo Global Management are all set for the acquisition of Diamond Resorts for a sum of $2.2 billion, which works out around $30.25 per share.  There has been industry news regarding Diamond since back in February when they announced that they were looking into strategic business changes.  At this point when announced, there was quite a drop in the share price, but since the announcement of their merger with Apollo, there has been around 50% premium over the closing share price in February.

The merger is set to be complete within the next few months, and on completion Diamond Resorts will no longer have shares listed on the open market.  It will be a private company as of the completion of legalities.  The offer is an ‘all cash offer’ and there seems very few barriers in the way of this take-over.  There is a condition that requires 50% of shares should be tendered but there are no financing conditions or any other ‘usual’ obstacles that normally take time to iron out.  It is already agreed that Barclays, Royal Bank of Canada and Jefferies will be the finance providers for this transaction.

It would seem that it is fashionable for large hospitality take overs at the moment, this announcement only six weeks after ILG completed its acquisition of Starwood’s Vistana, and also the Hilton spin off planned for later this year.  It could be exciting times ahead with all of these changes, we will just have to wait and see what the future holds for Diamond Resorts hospitality and leisure resorts.  Apollo Global is a private equity firm with offices around the globe, one of the partners, David Sanbur has said ‘we are tremendously excited about the opportunity for our funds to acquire Diamond Resorts’.

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