Peak Resorts news on Monday about a deal with Vail Resorts has SKIS stock soaring.
This deal will have Peak Resorts (NASDAQ:SKIS) being acquired by Vail Resorts (NYSE:MTN). This has the latter offering to purchase all outstanding shares of SKIS stock for $11.00 each. This represents a 116% premium to the stock’s closing price on Friday.
The Peak Resorts news release notes that both companies’ Board of Directors are supporting the deal. The Board of Directors for SKIS is also advising all shareholders to vote in favor of the deal.
“With this acquisition, we’re also able to make a much stronger connection to guests in critical cities in the Mid-Atlantic and Midwest, and build on the success we have already seen with our strategy in Chicago, Minneapolis and Detroit,” Rob Katz, Chairman and CEO of Vail Resorts, said in a statement.
So long as the Peak Resorts news goes over well, the companies are looking for the deal to close this fall. This means it will have to complete customary closing conditions, get approval from regulators and have SKIS stockholders vote in favor of it.
Peak Resorts is getting its financial advice for the deal from Moelis & Company. It’s legal advice concerning the deal with Vail Resorts is coming from Perkins Coie, Sandberg Phoenix & von Gontard P.C. and Armstrong Teasdale.
SKIS stock was up 112% and MTN stock was up 3% as of Monday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.