Soho House (NYSE:SHCO) shares surged more than 55% after the private members’ club received a premium buyout offer.
The company said it has received a purchase offer from a third-party consortium of $9 per share, an 83% premium from its closing price on Wednesday.
The offer, supported by Executive Chairman Ron Burkle and The Yucaipa Companies, requires significant shareholders, including Yucaipa, to roll over their equity interests.
Burkle has been advocating to take Soho House private throughout this year, following a decline in its stock price since its 2021 initial public offering.
In response to the offer, Soho House’s board has established a Special Committee to evaluate the proposal.
The company does not expect to make any further public comment unless and until a transaction or alternative is approved, or it concludes its reviews.
Soho House also reported its third quarter results on Thursday, which included revenue of $333.4 million, just shy of Wall Street estimates of $334.6 million.
It posted a loss per share of $0.01, in line with the consensus and an improvement from a loss per share of $0.22 in the year-ago quarter.
Shares of Soho House traded up 55.4% at $7.63 late morning on Thursday.