posted on February 10, 2011 20:24
Timeshare operator Silverleaf Resorts Inc. has agreed to a buyout by Cerberus Capital Management, a hedge fund and private equity firm.
The cash deal is valued at $94 million.
New York-based Cerberus will pay $2.50 per share for Dallas-based Silverleaf, a 75 percent premium over the company’s closing price of $1.43 on Feb. 3. Silverleaf shares skyrocketed on Friday on news of the deal, gaining $1, or 69 percent, to close at $2.43 in heavy volume.
Silverleaf (NASDAQ: SVLF) operates the Silverleaf Seaside Resort on Galveston Island and 18 other timeshare resorts around the country.
The buyout has already been approved by Silverleaf’s board of directors. Shareholders still must approve the deal, Silverleaf said in a statement.
Greg Barr, 2/4/11, Houston Business Journal