Market Overview

Potential ClubCorp-Apollo Deal Under Scrutiny

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ClubCorp Holdings Inc (NYSE: MYCC) spiked in early Monday trading, on word of a definitive agreement with affiliates of certain investment funds managed by affiliates of Apollo Global Management LLC (NYSE: APO) to acquire all of the outstanding shares of ClubCorp for $17.12 per share in cash.

Not everyone concerned with the potential deal, however, is sure everything is being done according to Hoyle. A release was issued Monday morning stating that a San Diego-based shareholder rights law firm, Johnson & Weaver, is launching an investigation into the prospective pact.

The probe concerns whether the ClubCorp board failed to satisfy its duties to the company shareholders and whether Apollo is underpaying for the company. The transaction may put too small a price on the Company and would result in a loss for many ClubCorp shareholders. The price being paid by Apollo is below an analyst price target of $27.00 per share. In 2015 the stock traded above $20.00.

 
ClubCorp is a membership-based leisure company that owns and operates private golf, country, business, sports, and alumni clubs in North America.
 
Apollo is a leading global alternative investment manager with offices worldwide. Apollo had assets under management of approximately $197 billion in private equity, credit and real estate funds invested across a core group of nine industries


Meantime, ClubCorp shares jumped $3.98, or 30.3%, in mid-morning trading Monday to $17.08, while Apollo shares gained 38 cents, or 1.4%, to $26.72.

 

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