Soho House Receives Buyout Offer
What started out as a promising rebound day fizzled by the close with the DJIA up 15, Nasdaq down 20, the S&P 500 down 5 points and the 10-year treasury yield up .08 to 4.57%. Lodging stocks were mixed. SHCO traded up to a new high, up 47% but even that was a fizzle from the opening burst on the proposed takeover. SVC traded down to a new low and AHT fell -7% on the day.
The biggest news of the day was that Soho House & Co received an offer from a third-party consortium to acquire the company at $9 per share, 83% higher than yesterday's closing price. Executive Chairman Ron Burkle and his Yucaipa Companies and its affiliates will have to roll over their equity interests in the company as part of the transaction but Burkle said he and Yucaipa support the transaction. SHCO will have an independent Special Committee of the Board evaluate the offer. Ironically, they announced it the same day they reported mixed earnings. While
