Soho House stock surges on buyout offer

Investing.com -- Shares of Soho House & Co Inc. (NYSE: SHCO) surged 56% following the announcement of a significant buyout offer and strong third-quarter financial results. Earlier this week, the company received a buyout proposal from a third-party consortium at $9.00 per share, an 83% premium over the closing price as of Wednesday, December 18, 2024. This offer is supported by significant shareholders, including Executive Chairman Ron Burkle and The Yucaipa Companies, contingent upon them rolling over their equity interests.

The Board of Directors has established a Special Committee to evaluate the offer, with no further public comments promised until a definitive decision is reached. The market's response reflects optimism about the potential acquisition, which is seen as a vote of confidence in the company's value not currently reflected in its share price.

In addition to the buyout news, Soho House reported robust third-quarter earnings, with total revenues reaching $333.4 million, marking a 13.6% increase year-over-year (YoY). Membership revenues saw a significant uptick, rising 16.7% YoY to $107.4 million and accounting for 32.2% of total revenues. The company also experienced a 4.8% YoY growth in total members and a 13% YoY increase in Soho House members. The membership waitlist remains at record levels, indicating sustained demand for the company's offerings.

Soho House & Co operates a global membership platform comprising physical and digital spaces, attracting a diverse and vibrant member base. The platform enables members to work, socialize, connect, and create across the world. The company's strong financial performance, coupled with the potential acquisition, has led to a significant rise in its stock price, as investors react to the positive developments.

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Source: Investing.com