UPDATE 1-Bluegreen plans to sell itself for $500 mln

(Recasts; adds details, share movement)

July 21 (Reuters) - Bluegreen Corp (BXG.N), which markets resorts and sells home sites, said it plans to sell itself for about $500 million, more than double its market value as of Monday, to Diamond Resorts.

Diamond Resorts' offer of $15 per share is 133 percent more than Bluegreen stock's closing price of $6.44 on Monday on the New York Stock Exchange.

Under the terms of the deal, Bluegreen has granted Diamond Resorts an exclusive right of negotiation through Sept. 15, during which time Diamond Resorts will conduct more extensive due diligence, Bluegreen said.

Woodbridge Holdings Corp, which owns 9.5 million shares of Bluegreen, has indicated that it would be supportive of a transaction with Diamond at the terms stated in the letter of intent.

Alan Levan is the chairman of both companies. Woodbridge owns about 30 percent of Bluegreen, according to Reuters data.

Diamond Resorts, based in Las Vegas, Nevada, is a vacation ownership company that has 110 branded and affiliated resorts in various regions including the United States, Canada, Mexico, the Caribbean and Europe.

Shares of Bluegreen more than doubled to $13.50 in trading after the bell. They had closed up almost 3 percent at $6.44 in regular trade Monday. (Reporting by Dilipp S. Nag in Bangalore; Editing by Pratish Narayanan)