K-9 Acquisition, Inc., an affiliate of Apollo Global Management (APO: Quote), and Great Wolf Resorts, Inc. (WOLF: Quote) said Friday that they have entered into an amended merger agreement, whereby Apollo has agreed to increase its offer to acquire Great Wolf from $5.00 per share in cash to $6.75 per share in cash.
The increased offer price represents a premium of 61% over Great Wolf's closing stock price on the day prior to the announcement of the original offer on March 12 and a premium of 3% over the company's closing stock price on Thursday, April 5.
The increased offer was unanimously approved by the Great Wolf board of directors. The board has determined to recommend that Great Wolf shareholders tender their shares into Apollo's revised tender offer, which will expire on April 20.
In connection with the increased offer, Great Wolf has agreed to increase the termination fee and expense reimbursement payable to Apollo in certain circumstances, in proportion to the increase in the offer price, from a total of up to $7 million to a total of up to $9 million.
Additionally, Great Wolf said its board has terminated its consideration and evaluation of the April 4 unsolicited proposal from KSL Capital Partners to buy Great Wolf for $6.25 per share in cash.
by RTT Staff Writer
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