Kerzner Agrees to $3B-Plus Buy-Out

BAHAMAS-Casino and resort operator Kerzner International has announced a management buy-out of $3.2 billion, 6% above its previous offer.

The buy-out group, led by Kerzner chairman Sol Kerzner and chief executive Butch Kerzner, raised an earlier offer. Bahamas-based Kerzner, which owns brands such as Atlantis resorts and One&Only hotels, said as a result of the raised offer it would no longer seek higher offers. The higher offer by management follows the refusal of one large investor to support an earlier offer. Ronald Baron, who controls 15.8% of Kerzner through various entities, suggested the investor group raise its offer to $80 a share.

The total deal, including the $599 million of net debt, is about $3.8 billion and carries a break-up fee of 3% of the equity value of the deal, or about $95 million.