* Cerberus to pay $2.50/shr cash, 75 pct premium
* Silverleaf board approved transaction
* Cerberus to fund the deal with equity
NEW YORK, Feb 3 Timeshare operator Silverleaf
Resorts SVLF.O agreed to be bought on Thursday by hedge fund
and private equity firm Cerberus Capital Management [CBS.UL]
for $94.4 million in cash.
Cerberus will pay $2.50 per share for Silverleaf, a 75
percent premium to the company's closing price of $1.43 on
Cerberus, which has $23 billion under management, has
agreed to provide equity financing for the full amount of the
Silverleaf is based in Dallas, Texas, and owns and operates
timeshare resorts with amenities including golf, clubhouses,
and indoor water parks.
Private equity firms are looking to buy assets as the
office and hospitality real estate sectors recover, and as
concerns about inflation increase the interest in real estate
as an investment.
The transaction has been approved by Silverleaf's board of
directors and a special shareholder meeting to approve the
merger will be held as soon as possible.
Silverleaf was advised by Gleacher & Co.
(Reporting by Clare Baldwin; Editing by Gary Hill)