Vail acquires Peak Resorts

[liquidfeet]

More here on that lawsuit that may slow down Vail's acquisition of Peak Resorts' holdings:
https://vtdigger.org/2019/09/04/inv...isition-of-peak-resorts-including-mount-snow/

For a quick summary, I found the following at: https://www.skiessentials.com/Chairlift-Chat/Top-Five-Fridays-September-6-2019? (scroll down to #3)

"With a vote to approve the acquisition scheduled for September 20th, shareholder John Field claims that insufficient and misleading information was provided to shareholders to hide elements of insider trading. While the details of the matter are too complicated to explain in full in this quick recap, the bottom line is that Mr. Field has reason to believe that a singular shareholder controlling 54% of Peak Resort’s voting rights had been given the ability to negotiate terms of the sale. As such, the deal is, or could be, structured to unfairly benefit that singular stock holder. This of course, amounts to a text book definition of insider trading."

 

[marzNC]

More here on that lawsuit that may slow down Vail's acquisition of Peak Resorts' holdings: . . .

I found an article on a legal website that said the shareholder who is suing is from Boston. The suit was filed in late August, but didn't get into general media outlets until after Labor Day.

Given that regular shareholders are being offered about twice what their shares were worth in the months before the announcement, have to wonder about the motives behind the suit. The financial situation for Peak Resorts is complicated because a lot of money was invested in Peak by a member of the Sackler family. In general, Peak has been hard pressed to find enough capital for acquisitions and major capital projects once they decided to expand into the northeast and mid-Atlantic.

 

[liquidfeet]

I wonder if that single shareholder is Sackler.

 

[marzNC]

I wonder if that single shareholder is Sackler.

No. However, the owner of the special shares that stands to end up with a lot of money from the buyout by Vail Resorts is a Sackler. Cap 1 owns the "preferred stock." I would guess that if John Fields owned any Series A stock, he wouldn't be opposing the buy out. Cap 1 provided the money that Peak needed to purchase Snowtime (Whitetail, Liberty, Roundtop) in 2018.

From the VT Digger article:
" . . .
The merger needs to be approved by at least two-thirds of shareholders that own outstanding shares of common stock and Series A preferred stock. If approved, shareholders will receive $11 for each share of common stock, according to a Securities and Exchange Commission document.

Most of the voting power lies in a company called Cap 1.

Cap 1 is owned by a trust in which members of the Sackler family are beneficiaries.
. . ."

 

[liquidfeet]

Oh, that's what I meant. I was guessing that a Sackler or buncha Sacklers have that 53% majority of Peak stock and stand to make beaucoup bucks on the sale after having negotiated it.

 

[ski diva]

Peak Resort shareholders approved the merger today.

Go here for the press release.

 

[liquidfeet]

What about that lawsuit trying to stop it? Still in the works?

 

[marzNC]

What about that lawsuit trying to stop it? Still in the works?

The lawsuit hoped to delay the vote. Obviously that didn't happen. Who knows what happened behind the scenes.

 

[Ski Sine Fine]

I received an email from Mt. Snow and Liberty saying they are now part of Epic with information on how to exchange the local pass product for an Epic pass. (Strange I got an email from Mt. Snow — never been there.) If you bought a local pass before the Vail acquisition announcement, you can upgrade to the Epic pass at the pricing and benefits in existence at the announcement date. If you bought a local pass after the announcement, the upgrade price and benefits are at the current rate:

“...exchanges for products purchased prior to the 7/22/2019 acquisition announcement will be eligible to receive pricing and benefits on their new pass in line with those available on the acquisition announcement date, until season passes for the 2019-20 season are no longer being sold. For those who purchased a Peak or Midwest pass product after 7/22/2019, guests will be eligible to upgrade or exchange to an Epic Season Pass product at the current price and benefit offering available for that product.”

The email also asks people who purchased before the acquisition announcement and who want to upgrade to delay calling until after October 13th. Same for those who needed a refund for the local pass because they bought both before the announcement.

 

[Ski Sine Fine]

I waited until Oct. 17th to call Vail. Judging by the 17 minutes I was on hold, Vail is doing a brisk business upgrading Peak passes. Anyway, the refund for my Peak pass came through this week. I was at first surprised the refund isn’t a single lump sum back to my credit card, but instead are reversals of each installment payment. In retrospect that makes more sense and probably easier to do in the system. More money for ski trips.