Diamond Resorts Corp. said Monday that it has made a proposal to acquire all the outstanding shares of Bluegreen Corp. (BXG: Quote) for $6.25 per share in cash, representing a total equity value of about $197 million.
The Diamond Resorts offer an 18% premium above the closing price of Bluegreen's common stock on June 15, and a 17% premium over the all-stock offer proposed by BFC Financial (BFCF.PK).
Diamond Resorts said its offer was initially submitted to the Bluegreen Board of Directors on June 15, but on June 18, the Special Committee of the Bluegreen Board rejected the proposal without discussion and without informing its shareholders of the superior offer.
With the Bluegreen shareholder vote to approve the BFC merger scheduled for Tuesday, June 19, and a superior offer for the company on the table, Diamond Resorts urged the Bluegreen Board to delay the vote or failing that, for Bluegreen shareholders to reject the existing offer in order to fully consider the superior Diamond Resorts proposal.
In November, Bluegreen entered into a definitive agreement with BFC Financial, pursuant to which Bluegreen will become a wholly-owned subsidiary of BFC, which owns about 52% of Bluegreen's Common Stock.
Under the terms of the agreement, Bluegreen stockholders will be entitled to receive eight shares of BFC's Class A Common Stock for each share of Bluegreen's Common Stock they hold at the effective time of the merger.
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by RTT Staff Writer
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