Apollo Global Management, through its subsidiaries, agreed to pay .2 billion to buy Las Vegas-based Diamond Resorts.
“We look forward to bringing Apollo’s resources to bear and working with the Diamond Resorts team to continue to grow and enhance their business,” Apollo partner David Sambur said in a news release.
He said the Diamond Resorts’ “management team and Diamond’s more than 8,000 team members have built an amazing customer-centric business with a great reputation that delivers award-winning hospitality experiences at great value,”
Diamond Resorts is a luxury timeshare company, owns 420 properties in 35 nations, and agreed to the cash deal, which is equal to $30.25 a share and represents an about-26 percent premium over its share price at the time of the sale.
Diamond Resorts owns Polo Towers, which has rooms overlooking the Las Vegas Strip and Cancun Resorts Las Vegas, which is located on further south on Las Vegas Boulevard.
Apollo Global Management on March 31 reported about $173 billion in assets under management across nine global industries. In 2008, it partnered with TPG Capital to buy what eventually became Caesars Entertainment.
Despite the relatively high selling price, for Diamond Resorts at least two potential legal actions might challenge the deal based on fiduciary duty claims.
The Andrews & Springer law firm in Wilmington, Delaware, and the Johnson & Weaver law firm in San Diego announced separate potential legal actions.
The law firms say the selling price should have been higher, although similar claims often are made whenever a publicly traded firm is sold.
Diamond Resorts CEO David Palmer called the deal an “excellent outcome for our shareholders.”
