Great Wolf Top Shareholder Rejects Apollo Bid

Great Wolf Resorts‘ largest investor, HG Vora Capital, recommended shareholders reject Apollo Global‘s $6.75 per share bid that values the company at $225.7 million, as the hedge fund expects higher offers, Reuters wrote Tuesday. HG Vora Capital did not recommend private equity firm KSL Capital‘s $7 per share offer and said it would not back any offer until it was satisfied that Great Wolf’s board has fully explored all alternatives.

(Reuters) – Great Wolf Resorts’ largest investor, HG Vora Capital, recommended shareholders reject Apollo Global’s $6.75 per share bid that values the company at $225.7 million, as the hedge fund expects higher offers.

 

HG Vora Capital did not recommend private equity firm KSL Capital’s $7 per share offer and said it would not back any offer until it was satisfied that Great Wolf’s board has fully explored all alternatives.

 

New York-based HG Vora Capital, which owns a 12 percent stake in Great Wolf according to Thomson Reuters data, said the “best and final offers” for the operator of indoor water resorts may not have yet been made.

 

Last month, Great Wolf agreed to be bought by Apollo for $5 a share, an offer that outraged some investors who called it too low and “woefully inadequate” before KSL Capital came in with a higher bid.

 

Great Wolf later said it accepted Apollo’s bid as the best after exploring strategic alternatives for nine months and reaching out to 38 prospective bidders.

 

In those nine months, KSL Capital was one of the firms that had looked at Great Wolf and had also made a $5 a share offer that was subject to some conditions on the company’s debt.

 

Earlier this month, PWK Partners – which says it owns about 4 percent of Great Wolf – said the company had an intrinsic value of about $10 per share.

 

Great Wolf’s shares closed at $7.44 on Monday on Nasdaq, a cent below their four-year high touched earlier in the session. (Reporting by Jochelle Mendonca in Bangalore; Editing by Joyjeet Das)