Soho House receives takeover offer from unnamed consortium

(Sharecast News) - Shares in New York-listed Soho House & Co soared on Thursday after the private members club revealed that it had received a takeover offer valuing the company at around $1.8bn. The offer, from an unnamed third-party consortium, was equal to $9.00 a share, an 83% premium to Wednesday's closing price of $4.99.

According to Sharecast estimates, the offer values the company at roughly $1.77bn.

The offer, which is conditional on certain significant shareholders - including executive chair Ron Burkle and investment firm and Yucaipa Companies - rolling over their equity interests as part of the transaction.

Both Burkle and Yucaipa are in support of the offer, Soho House said in a statement, and the board has now formed an independent special committee to evaluate the terms.

"The offer, which is supported by Ron Burkle and Yucaipa, was the result of a thorough strategic review undertaken by Yucaipa and its financial advisors to enhance shareholder value, as Yucaipa believes the inherent value of the company is not reflected in its current share price," the statement said.

Soho House's share price jumped 52% to $7.57 by 1033 ET, following a near 25% drop in the stock so far this year.

The news came alongside the company's third-quarter results, which showed that revenues were 13.6% higher at a record $333m, helped by member numbers rising 4.8% over the three months to 267,494.