Apollo Global To Buy Diamond Resorts In $2.2 Bln Deal; Stock Surges

(RTTNews) - Diamond Resorts International Inc. (DRII) said that it has entered into an Agreement and Plan of Merger with affiliates of certain funds or the "Apollo Funds" managed by affiliates of Apollo Global Management, LLC (APO), pursuant to which the Apollo Funds will acquire Diamond Resorts for $30.25 per share or approximately $2.2 billion.

In the pre-Market trade, DRII is currently trading at $29.76, up $5.69 or 23.64 percent.

The all-cash offer represents a premium of approximately 26% over Diamond Resorts' closing share price on June 28, 2016, and a premium of approximately 58% over the closing share price on February 24, 2016, the day of Diamond Resorts' announcement that it was exploring strategic alternatives.

The transaction is conditioned upon satisfaction of the minimum tender condition which requires that shares representing more than 50 percent of the Company's common shares be tendered and the receipt of certain regulatory approvals and other customary closing conditions.

There is no financing condition to completion of the tender offer and the merger. Financing is being provided by Barclays, Royal Bank of Canada, and Jefferies. PSP Investments Credit USA LLC is also providing debt financing commitments.

The transaction is currently expected to close over the next few months. If completed, the transaction will result in the Company becoming a privately held company, and Diamond Resorts' common shares will no longer be listed on any public market.