Soho House, a members-only club, has seen its shares jump after receiving a buyout offer. The offer, at $9 per share, is supported by controlling shareholder Ron Burkle and his Yucaipa investment firm. This comes after years of declining stock prices and a previous rejected takeover bid.
Soho House shares surged nearly 70 percent after the members' club announced it had received an offer to buy it at a premium to its current market value, following years of stock price struggles. The offer, at $9 a share, represents an 83 percent premium to Wednesday’s closing price of $4.91. It is supported by Soho House ’s controlling shareholder, American retail billionaire Ron Burkle and his Yucaipa investment vehicle, the group said on Thursday.
Still, the offer is well below Soho House’s initial listing price of $14 a share when it went public in 2021. Thursday’s gains brought the stock to $7.82 in mid-morning trading in New York. The offer is contingent on significant shareholders — including Burkle and Yucaipa — maintaining their equity interests through a rollover arrangement, the group added.Soho House did not disclose the identity of the bidder, but said it was a “new third-party consortium”. The company revealed in May it had received a take-private offer and rejected it, saying it did not reflect the value of the company. The latest offer was “the result of a thorough strategic review undertaken by Yucaipa and its financial advisers to enhance shareholder value, as Yucaipa believes the inherent value of is not reflected in its current share price,” the company said in a statement. The board had formed an independent special committee to evaluate the offer, it said, adding that no assurances could be given that its assessment would result in any change in strategy. The potential deal follows a longtime slump of shares since the company, which operates 45 members’ clubs worldwide with more than 267,000 members, went public. Wednesday’s closing price was down 64 percent from its listing pric
Soho House Takeover Offer Buyout Ron Burkle Yucaipa
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