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Diamond Resorts Stock (DRII) Soaring Over 20% Due to Merger Agreement
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Diamond Resorts International, Inc. Wednesday announced that it has entered into a merger agreement with affiliates of certain funds (the Apollo Funds) managed by affiliates of Apollo Global Management, LLC (APO - Free Report) . The New York City-based private-equity firm will acquire the vacation resort operator for $30.25 per share, or approximately $2.2 billion. As of 12:14 PM ET, shares of Diamond Resorts were up 23.72%, while shares of Apollo remained relatively dormant.
This was an all-cash offer representing a premium of approximately 26% over Diamond Resorts’ closing share price on June 28, 2016.
Diamond Resorts CEO Mr. David Palmer said on the matter, “We have built a solid business focused on operational excellence, hospitality, and customer satisfaction, the result of which has been stellar financial results and strong cash generation. This transaction is an excellent outcome for our shareholders. Apollo values the culture of hospitality and customer service that is the legacy of our Founder and Chairman Stephen J. Cloobeck and instilled in our organization.”
“We are tremendously excited about the opportunity for our funds to acquire Diamond Resorts,” said David Sambur, Partner at Apollo. “Stephen, David, the management team, and Diamond’s more than 8,000 team members have built an amazing customer-centric business with a great reputation that delivers award winning hospitality experiences at great value.”
Earlier this month, Apollo Management reportedly submitted a bid in the final round of Concordia Healthcare Corp. auction process. However, there was uncertainty regarding materialization of the deal.
Back in late-February of 2016, Diamond Resorts had a very similar trading day, in that shares of the company were up over 24% during morning trading after the company announced that its Board of Directors formed a committee of independent directors to explore strategic alternatives.
Diamond Resorts has a Zacks Rank #2 (Buy) and Apollo Global has a Zacks Rank #3 (Hold).
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Diamond Resorts Stock (DRII) Soaring Over 20% Due to Merger Agreement
Diamond Resorts International, Inc. Wednesday announced that it has entered into a merger agreement with affiliates of certain funds (the Apollo Funds) managed by affiliates of Apollo Global Management, LLC (APO - Free Report) . The New York City-based private-equity firm will acquire the vacation resort operator for $30.25 per share, or approximately $2.2 billion. As of 12:14 PM ET, shares of Diamond Resorts were up 23.72%, while shares of Apollo remained relatively dormant.
This was an all-cash offer representing a premium of approximately 26% over Diamond Resorts’ closing share price on June 28, 2016.
DIAMOND RESORTS Price and Consensus
DIAMOND RESORTS Price and Consensus | DIAMOND RESORTS Quote
Diamond Resorts CEO Mr. David Palmer said on the matter, “We have built a solid business focused on operational excellence, hospitality, and customer satisfaction, the result of which has been stellar financial results and strong cash generation. This transaction is an excellent outcome for our shareholders. Apollo values the culture of hospitality and customer service that is the legacy of our Founder and Chairman Stephen J. Cloobeck and instilled in our organization.”
“We are tremendously excited about the opportunity for our funds to acquire Diamond Resorts,” said David Sambur, Partner at Apollo. “Stephen, David, the management team, and Diamond’s more than 8,000 team members have built an amazing customer-centric business with a great reputation that delivers award winning hospitality experiences at great value.”
Earlier this month, Apollo Management reportedly submitted a bid in the final round of Concordia Healthcare Corp. auction process. However, there was uncertainty regarding materialization of the deal.
Back in late-February of 2016, Diamond Resorts had a very similar trading day, in that shares of the company were up over 24% during morning trading after the company announced that its Board of Directors formed a committee of independent directors to explore strategic alternatives.
Diamond Resorts has a Zacks Rank #2 (Buy) and Apollo Global has a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>