A group of investors that includes billionaire Ron Burkle is close to a deal to take members’ club Soho House & Co. private, according to the Wall Street Journal.
Burkle, the controlling shareholder, would roll over his stake under the arrangement being discussed, the paper said, citing people familiar with the matter.
Apollo Global Management Inc. would contribute more than $700 million in financing, the paper added.
The deal would value Soho House at around $1.8 billion, with investors paying around $9 a share for its public stock. That compares with its Friday close of $7.64. The new equity investors would be led by MCR Hotels, the paper said.
Soho House shares rose as much as 13% in premarket trading on Monday. As of the last close, the stock has gained more than 30% in the last 12 months.
Burkle had been championing an effort to go private since last year as shares of Soho House have slumped since its initial public offering in 2021.
Third Point Investors Ltd., the hedge fund led by Dan Loeb, had criticized the effort to take Soho House private, calling the process “opaque.”
Soho House started out as a members-only club in London in 1995 but has since expanded significantly with venues all over the world.
MCR Hotels, Soho House and representatives for Burkle didn’t immediately respond to email requests for comment sent outside of business hours.
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