Great Wolf Resorts, Inc. (WOLF: Quote) late Friday said that private equity firm KSL Capital Partners, which was part of a bidding battle to acquire the waterpark resorts operator, informed its withdrawal from making further proposals.
Great Wolf earlier today has agreed to alternative investment manager Apollo Global Management LLC's (APO: Quote) revised cash offer of $7.85 per share, which topped a bid from KSL for the third time this month. The company urged its shareholders to accept that offer. Apollo's revised tender offer is scheduled to expire on Friday, May 4.
Great Wolf said the sweetened offer represents a premium of 87 percent over Great Wolf's closing stock price on the day prior to the announcement of Apollo's original offer on March 12. It also represents a premium of 171 percent to the six-month average of Great Wolf's share price prior to the initial announcement.
Apollo's just previous offer was $7 per share. It was in mid March that Apollo made its initial offer to acquire Great Wolf for $5 per share. However, early April, KSL made a superior proposal of $6.25 per share.
The tussle to acquire Great Wolf, which operates a chain of indoor water parks, between Apollo and KSL had heated up this month, with Apollo lifting its bid to $6.75 per share and then to $7 per share to counter KSL's offers. Yesterday, KSL Capital raised its offer to $7.25 per share, the third attempt to acquire Great Wolf.
For Great Wolf, Deutsche Bank Securities Inc. is serving as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal advisor.
Morgan Stanley & Co. LLC, UBS Investment Bank and Nomura Securities International, Inc. are serving as financial advisors to Apollo and Akin, Gump, Strauss, Hauer & Feld LLP is serving as legal advisor.
Great Wolf shares closed Friday's trading at $8.06, up $0.64 or 8.63 percent. In the extended trading, shares lost $0.04 or 0.50 percent to $8.02.
Apollo shares settled at $12.99, down $0.52 or 3.85 percent.
by RTT Staff Writer
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