Apollo Global to buy Diamond Resorts for $2.2 billion
Submitted by paula on Fri, 07/01/2016 - 5:26pm
Las Vegas based Diamond Resorts International Inc said it agreed to be bought by private equity firm Apollo Global Management LLC for about $2.2 billion.
Apollo Global's offer of $30.25 per share in cash represents a premium of about 26 percent to Diamond Resorts' closing stock price on Tuesday. Shares of Diamond rose to $30.00 in morning trading, just shy of the offer price.
The deal follows a series of mergers in the hospitality industry this year.
Marriott International Inc offered to buy Starwood Hotels & Resorts Worldwide Inc after China's Anbang Insurance Group said it abandoned its $14 billion bid for the Sheraton and Westin hotels operator.
In April, HNA Tourism Group, a division of Chinese aviation and shipping conglomerate HNA Group, agreed to buy Carlson Hotels, the owner of the Radisson hotel chain.
Diamond Resorts, which has a network of 379 vacation destinations in 35 countries including a resort in South Lake Tahoe, said in February it was exploring strategic alternatives.
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