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Vacasa isn’t scuttling the Casago acquisition deal just yet, but it is mulling a superior financial offer from a new bidder.
Vacasa announced Tuesday that it received an unsolicited, non-binding offer from Davidson Kempner Capital Management, a hedge fund, to acquire the company for $5.25 per share.
The Casago deal, which the Vacasa board endorsed, is for $5.02 per share.
Vacasa stated that its board “has not withdrawn or modified its recommendation that the shareholders of Vacasa vote in favor of the adoption of the Merger Agreement” with Casago.
A Vacasa special committee is studying the hedge fund’s bid, adding that Vacasa shareholders don’t need to take any action on the offer at this point.
Strategic Investor or Financial Buyer?
Vacasa will have to decide whether it will stick with Casago, a strategic buyer that has a vision to grow their combined vacation rental businesses. Davidson Kempner could potentially chop up Vacasa and sell its assets.
Casago, too, has a plan to sell some of Vacasa’s local operations but in a more limited way than a classic buy and flip strategy. The combined Casago/Vacasa would sell some local property management operations with the aim of creating franchise relationships with some of the buyers.
Davidson Kempner already has two directors on the Vacasa board. In August, the hedge fund, which makes distressed debt deals, closed a $30 million senior secured notes agreement with Vacasa at an 11.25% annual interest rate. Davidson Kempner has the option to convert the notes into Vacasa Class A shares.
As the process plays out, it’s possible that Vacasa could receive other offers, as well.
Vacasa’s stock was trading midday Tuesday at $5.31 per share.
