Shares of Travelzoo (NASDAQ:TZOO) climbed Friday morning after a small investment company revealed intentions to possibly take it private through a tactical tender offer.
The company, called ChaPaVe, proposed buying up to 1.5 million outstanding Travelzoo shares for $40 each. It encouraged other big investors to buy the remaining shares of Travelzoo, as its proposal only claims 9%.
If all shares are tendered, the investment company said Travelzoo will be in a position to examine a going private initiative.
The deal is subject to Travelzoos management and board meeting with ChaPaVe to complete due diligence, according to a statement released by the investment firm.
Another condition is that the investment fund receives financing commitment no later than Oct. 18, when the terms of the deal will be made available to TravelZoo shareholders.
Under its proposal, ChaPaVe said it will not be required to move ahead with the offer if TravelZoo experiences any material adverse change in its business.
Travelzoo, an web-based provider of travel and entertainment offers, reported in July a 53% improvement in second-quarter profit on higher newsletter subscribers.