Shares of membership-based leisure company ClubCorp (NYSE: MYCC) jumped as high as 30.5% on Monday. The stock's sharp rise follows news that ClubCorp is going private in an all-cash transaction. Shares are up 30.2% at the time of this writing.
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On Sunday, ClubCorp said it entered into a definitive agreement to be acquired by some investment funds affiliated with Apollo Global Management. According to the deal's terms, ClubCorp will be acquired for about $17.12 per share in cash, amounting to a total of about $1.1 billion.
Justifying Monday's stock move, the value of the deal represents a 30.7% premium over ClubCorp's closing stock price on Friday.
ClubCorp's deal to go private isn't in the bag yet. The transaction is still subject to closing conditions and approval by ClubCorp shareholders. Management expects the deal to close in the fourth quarter.
Given the significant premium built into the offer to take ClubCorp private, shareholders likely will be in favor of the deal.
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