The committee is made up of members of the Dallas-based company’s board of directors. “The committee is evaluating opportunities with a focus on maximizing value for all shareholders,” ClubCorp said in filings with the U.S. Securities and Exchange Commission.
ClubCorp has formed a strategic review committee tasked with “reviewing and evaluating alternatives to further enhance shareholder value,” the Dallas Business Journal reported.
The Dallas company, which owns more than 200 golf, country, business, sports and alumni clubs in 26 states and two countries, said the committee will be made up of members of ClubCorp’s board of directors. The group will work with Jefferies and Wells Fargo Securities as financial advisers, the Business Journal reported.
“The committee is focusing on opportunities to further unlock the value inherent in the company,” ClubCorp said in filings with the U.S. Securities and Exchange Commission. “The committee is evaluating opportunities with a focus on maximizing value for all shareholders.”
SEC documents also state the committee will work with the company’s management team to “oversee the review process.” It will report its findings directly to ClubCorp’s board of directors, the Business Journal reported.
The formation of the committee comes after FrontFour Capital, which owns 3.4 percent of ClubCorp’s outstanding shares, sent a letter in September calling for the company to consider selling itself. The Greenwich, Conn., firm criticized ClubCorp’s stock, which at the time was trading down roughly 36 percent over the previous 12 months, the Business Journal reported.
Shares of the company closed at $17.35 on Thursday. In its letter, FrontFour has valued the stock at $27, but shares are trading up nearly 30% over the past year, the Business Journal reported.
To fully realize ClubCorp’s value, FrontFour urged the company’s board to “retain an investment bank to pursue any and all strategic alternatives, including an outright sale of the company.”
Tell Us What You Think!
You must be logged in to post a comment.