It hasn't been a good year thus far for ClubCorp (MYCC 13.10) shareholders, as the stock has fallen 8.7% year-to-date. Today, however, is going to make up for that. Following the news that ClubCorp has agreed to be acquired by certain investment funds affiliated with Apollo Global Management, shares of MYCC are trading 30% higher in pre-market action.
The move in the stock will make a lot of ClubCorp investors happy -- and whole. The company priced its IPO at $14.00 and closed its first day of trading on September 20, 2013, at $14.50.
ClubCorp is a leading owner and operator of private golf and country clubs, as well as private business, sports, and alumni clubs in North America.
ClubCorp said in January that it would conduct a review of its strategic alternatives. That declaration pushed the stock 16% higher when it was made, yet the positive move was short-lived. MYCC shares soon faded and eventually gave back that entire gain and then some after announcing in April that its Board had determined not to pursue a strategic transaction at that time.
Apollo, however, subsequently gave ClubCorp's Board of Directors more to think about when it proposed an acquisition of the company and its stock for $17.12 per share in cash, or approximately $1.1 billion. That offer translates into a premium of approximately 30.7% over MYCC's closing price on July 7.
The offer has been unanimously approved by ClubCorp's Board of Directors. It still needs other customary approvals, including from ClubCorp shareholders, but it is expected to close in the fourth quarter of this year. Following the closing of the transaction, ClubCorp will be a privately-held company.