Whistler-Blackcomb holdings, owner of one of Canada’s biggest ski resort, will be purchased by Colorado-based Vail Resorts Inc. under a friendly deal announced by the companies.
Whistler-Blackcomb shareholders are being offered an amount of $676 million and Vail stock worth about $715 million, making the arrangement worth almost $1.4 billion.
The $36 per share cash and stock offer speaks to a premium of around 43% to Whistler Blackcomb’s Friday closing. Shares of Whistler Blackcomb jumped 43% rising $10.80 to $35.94.Whistler Blackcomb shares closed in Toronto on Friday at $25.14, giving it a market value estimation of about $960million preceding Monday’s declaration.
Whistler-Blackcomb CEO Dave Brownlie says Vail would provide greater financial strength and greater diversity through alliances in the United State, Australia and Canada.
Vail CEO Rob Katz says the joint expertise of two companies will enhance the experience for visitors and preserve the brand and character of the B.C all season resort, which is about 125 kilometers north of Vancouver.
Vail vowed to keep leadership local, hold most staff and keep progressing arrangements with first nations groups about its master development agreement. Vail said its arrangements to the “invest substantially” in Whistler Blackcomb’s infrastructure and its extensions of four season activities.
Whistler Blackcomb says it isn’t safe to regional weather patterns and that the exchange secures the “long-term future” of the resort. As temperature rises globally, numerous ski resorts, incorporating those in California, have needed to defer their season openings or close right on time because of the absence of snow.
Brownlie said in a meeting with Bloomberg this year that Whistler Blackcomb could grow its ski territory by around 25% from more than 8,100acres (3,278hectares) now.
Whistler Blackcomb works ayear-roundd mountain resort in British Columbia, which is open for skiing from November through May of every year.