Silverleaf Resorts Inc.’s (SVLF) shares spiked 71% after the timeshare operator agreed to be bought on Thursday by hedge fund and private equity firm Cerberus Capital Management for $94.4 million in cash.
Cerberus will pay $2.50 per share for Silverleaf, a 75% premium to the company’s closing trading price of $1.43 on February 3, 2011. Cerberus said it has agreed to provide equity financing for the full amount of the merger consideration.
Technically speaking, shares of SVLF are currently up $1.01 to $2.45 after breaking earlier above the recent 52-wk range highs of $1.73. The equity has tripled in value from its recent $0.71 Feb. 18, 2010, 52-week lows and the stock is more than 600% higher from the peak of the panic selling during March 2009.
Volume has exploded with more than 8.8 million SVLF shares already trading hands compared to a daily average volume of just 92,000 shares. The day’s range so far for shares of Silverleaf Resorts, which closed at $1.43 in the previous trading session and opened today at $2.44, has been between $2.43 and a 52-week high of $2.45 per share.
The average pps target of analysts who cover Silverleaf Resort is $5.00 per share. The company has a market cap of $92 million and a trailing twelve P/E ratio of 11.11.
Silverleaf Resorts, Inc. engages in marketing and selling vacation intervals in the United States. The co.was founded in 1989 and is based in Dallas, Texas.