Vail Resorts is buying Peak Resorts.

[catskillman]

https://www.benningtonbanner.com/stories/mt-snow-investor-sues-over-merger,583663


this should delay the closing..........

 

[deadheadskier]

Url not found

Sent from my XT1635-01 using AlpineZone mobile app

 

[machski]

Odd I cannot get the URL for the story to work either. Use this and it is second story on home page.

https://www.benningtonbanner.com

 

[mbedle]

They stated that the sale price is $463 million, which I thought was actually down around 283 million. Not sure what has changed, since the initial articles were posted about the sale.

 

[drjeff]

They stated that the sale price is $463 million, which I thought was actually down around 283 million. Not sure what has changed, since the initial articles were posted about the sale.

My hunch is the $463 million is more due to the poor math skills and/or lack of actually researching the story by the reporter than anything else..... Otherwise there's either been roughly an additional 75% of previously unknown various types of Peak stock shares recently "found" or Vail would of had to quietly up their offer to around $20 a share since announcing the $11 a share offer....

Sent from my Moto Z (2) using AlpineZone mobile app

 

[EPB]

https://www.benningtonbanner.com/stories/mt-snow-investor-sues-over-merger,583663


this should delay the closing..........

I doubt it. The'll need to argue that there is a better alternative to selling to Vail. Given the take out price is 2x the standalone trading price of Peak's stock and there is no indication that anyone else was going to offer that much for Peak, they'll have no legs to stand on. My sense of is they're hoping to get paid a settlement to go away - not to actually block the sale.

 

[urungus]

Mount Snow is selling lift tickets starting with dates starting Oct 26. If they manage to open that early, that is less than 2 months from now. Do you guys still anticipate the deal closing before opening day? Mount Snow was already crowded, with no other Epic Mountain open early in the season I fear what the lines will be like.

 

[drjeff]

Mount Snow is selling lift tickets starting with dates starting Oct 26. If they manage to open that early, that is less than 2 months from now. Do you guys still anticipate the deal closing before opening day? Mount Snow was already crowded, with no other Epic Mountain open early in the season I fear what the lines will be like.

The next Peak Board financial meeting and update should be the end of this month (September) at which point I would presume that they'd vote on the merger, and then the deal can presumably proceed from there.

Not sure exactly how long the approval from the SEC would take once the Peak board presumably approves this deal and what effect, if any, the lawsuit may or may not have on the time frame.

The time frame that I have heard a number of people. who know way more about the pace of progress of deals like this than I do, is that sometime in November would be a reasonably window to expect the deal to close

 

[mbedle]

My hunch is the $463 million is more due to the poor math skills and/or lack of actually researching the story by the reporter than anything else..... Otherwise there's either been roughly an additional 75% of previously unknown various types of Peak stock shares recently "found" or Vail would of had to quietly up their offer to around $20 a share since announcing the $11 a share offer....

Sent from my Moto Z (2) using AlpineZone mobile app

I agree, most likely reporter error.

Edit - I read the complaint and the number comes from a statement in the complaint that "The Proposed Transaction has an enterprise value of approximately $463.60 million."

 

[cdskier]

I agree, most likely reporter error.

Yea, I'm leaning towards maybe just a simple typo (replacing the 2 with a 4 somehow). I looked through the recent SEC filings and don't see anything that has changed. I couldn't find mention of that "$463M" figure anywhere in the notice to Peaks Shareholders about the upcoming vote on the merger (scheduled for September 20th) either.

I still never understand lawsuits like this. Are they actually ever successful?

 

[jimmywilson69]

I mean doesn't this dude stand to make double what the stock is worth right now?

I called Vail last week to ask about the pass prices and upgrade options once the deal closes. I was told, by a very exhausted sounding customer service rep, that in the past the upgrade price has been the difference between the pass prices at the time of announcement. he said he's received tons of calls from Peak Pass holders trying to find out this answer.

Why wouldn't Vail just make that statement out of the gate? Especially since the Epic Passes increase in price after the merger was announced.

 

[drjeff]

I mean doesn't this dude stand to make double what the stock is worth right now?

I called Vail last week to ask about the pass prices and upgrade options once the deal closes. I was told, by a very exhausted sounding customer service rep, that in the past the upgrade price has been the difference between the pass prices at the time of announcement. he said he's received tons of calls from Peak Pass holders trying to find out this answer.

Why wouldn't Vail just make that statement out of the gate? Especially since the Epic Passes increase in price after the merger was announced.

My guess is because nothing is final, until it's final. And if the deal takes a much longer time to close than expected, it could put them into a situation that creates far "worse" problems for both companies from a passholders customer service perspective, than having to answer the question over an over. Let's say that this lawsuit filed delays the deal until March or April, when next years (the '20-'21 season) are going on sale, and those who had Peak Passes for the '19-'20 season got basically a full seasons use out of their passes as they were intended on the pass purchase date (meaning a full season at Peak properties), you'd probably have a slew of folks expecting that the cost of their '19-'20 Peak pass product would be credited towards a '20-'21 Epic product, and that would cause issues.

As someone who has their '19-'20 Peak Pass in hand already, and is going to Utah around New Years (got the IKON pass for that) and also has the opportunity to ski current Epic resorts in Vermont in particular this coming season, I am 100% interested in what the specific details of "trading in" my Peak Pass for an Epic Pass will be. I also fully get that from the business side of things, even though the Vail Resorts folks likely have all of the specifics worked out for the likely timeline for the closing of the deal, that they can't be 100% sure of it, and changes to their plan for handling the Peak to Epic conversions may need to happen, which could create even more chaos than there will already be

 

[thebigo]

They updated the FAQ, sounds like peak pass holders will be able to purchase epic at the 7/22 rate and get a refund on their original purchase. Effectively a $70 charge to swap an explorer for epic local. A good deal for everyone except those with 6 year old kids, works out to around $450 for myself, wife and older daughter to ski sunapee. Not sure about direct to lift access for our three year old, dont see anything of the epic website.

The whole thing sounds like a logistical nightmare especially if they close in november, no way to get epic pass ahead of time, lines to swap will be out the door.

If I bought a Peak Resorts pass product, am I entitled to a refund?
After closing of the transaction, Vail Resorts will be allowing pass holders who purchased a Peak Resorts pass product to exchange their pass for an Epic Pass, should they want to. Depending on the price difference between the two products, you will either be charged the balance or refunded the difference. Please note, 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 for a limited time. For those who purchased a Peak 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.

Details about exchange information will be announced following the close of the acquisition.

If I purchased Peak Resorts season pass product already can I exchange for a pass that has access to other resorts?
Yes, after the closing of the transaction, you will be able to exchange for the Epic Pass. Please note, 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 for a limited time. For those who purchased a Peak 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.

More details on the process for exchange of Peak Resorts season pass products to be announced after the close of the acquisition.

 

[jimmywilson69]

Thanks for the info!

I wish they would've just put that in the FAQ from the beginning...

I will definitely be upgrading my wife and I to Epic Locals. I want this sale to close and I want winter to start STAT so I can figure out where I am going to take my college son over winter break.

 

[FBGM]

Looks like some sort of hiccup has happened in the buyout. Some board member is grumpy and suing? Standard America sue happy. Hopefully this doesn’t hang up the buyout process to long.

 

[cdskier]

Looks like some sort of hiccup has happened in the buyout. Some board member is grumpy and suing? Standard America sue happy. Hopefully this doesn’t hang up the buyout process to long.

Is there a new lawsuit? Otherwise the one filed last week was by a regular investor and not a board member from everything I read.

 

[FBGM]

Is there a new lawsuit? Otherwise the one filed last week was by a regular investor and not a board member from everything I read.

Oh - that’s the one.

Pay him off. Let’s get this show on the road. No one has time for lawsuits.

 

[cdskier]

I agree, most likely reporter error.

Edit - I read the complaint and the number comes from a statement in the complaint that "The Proposed Transaction has an enterprise value of approximately $463.60 million."

I actually just read the complaint too and came back here to state that's where it came from but see you edited your post after I last read and commented on it.

One of the plaintiff's main arguments seems to be that the board and/or executives are potentially making a lot of money on this transaction due to severance and restricted stock they had and that fact wasn't disclosed to shareholders. And therefore the deal is more beneficial to them than to actual shareholders and that's the real reason they are recommending that shareholders approve it. Call me crazy, but don't executives and board members almost always do better than common shareholders in a merger/buyout? No board in their right mind is going to approve a deal that pays peanuts to the board and execs and gives common shareholders a huge payoff. Even if that information should have been disclosed, I still don't see that making much difference to how most shareholders will vote. If I'm a shareholder that is receiving over twice the price the stock has been trading at for quite some time, chances are pretty good that to me that's going to sound like a good deal. I don't see anyone else knocking at Peaks' door to offer more than Vail did.

Overall still seems like a giant waste of the court's time as ultimately I suspect the deal still goes through even if slightly delayed.

 

[Newpylong]

The board (in general) doesn't stand to make any money on it as they are only paid a retainer to begin with. However if they are Inside Directors (Officers, major shareholder reps) then they could... Without going into SEC filings it's hard to see who on the board is a major stakeholder or not.

 

[Domeskier]

The suit will likely settle for additional disclosure and attorney's fees. Attorneys get a bad rap, but in cases like this it is more than deserved.