Diamond Resorts Corporation today announced that it has made a proposal to the Bluegreen Corporation (NYSE: BXG) Board of Directors offering to acquire all the outstanding shares of Bluegreen common stock for $6.25 per share, representing a total equity value of approximately $197 million. Diamond Resorts’ proposal is an all-cash offer and represents an 18 percent premium above the closing price of Bluegreen’s common stock on June 15, 2012. Importantly, Diamond Resorts’ offer represents a 17 percent premium over the all-stock offer proposed by BFC Financial (OTCBB: BFCF).
Diamond Resorts’ offer was initially submitted to the Bluegreen Board of Directors on June 15, 2012. On June 18, 2012, without discussion and without informing its shareholders of this superior offer, the Special Committee of the Board of Directors of Bluegreen Corporation notified Diamond Resorts that it was rejecting this proposal. With the Bluegreen shareholder vote to approve the BFC merger scheduled for Tuesday, June 19, 2012 and a superior offer for the company on the table, Diamond Resorts strongly urges the Bluegreen Board to delay the vote or failing that, for Bluegreen shareholders to reject the existing offer in order to fully consider the superior Diamond Resorts proposal.
“We are disappointed and quite frankly surprised that Bluegreen is not willing to delay its vote so that they can pursue our all-cash superior offer. Diamond Resorts has repeatedly tried to engage Bluegreen in an acquisition of the business and Bluegreen’s demonstrated lack of engagement is consistent with the Board’s continued efforts to enter into an undervalued insider deal and prevent its shareholders from considering our offer. Our offer is clearly superior to the existing offer and it is our belief that the Special Committee has both the ability and time to more fully consider our proposal while still maintaining its optionality with the BFC proposal,” stated Stephen J. Cloobeck, Chairman and Chief Executive Officer of Diamond Resorts.