Vacasa Receives Higher Buyout Offer from Davidson Kempner

Vacasa, a prominent vacation rental platform, is currently considering a higher buyout offer from Davidson Kempner Capital Management (DK), an existing shareholder, after initially receiving a lower bid from Casago. DK’s new proposal of $5.25 per share surpasses Casago’s earlier offer of $5.02 per share, positioning it as a more favorable alternative for shareholders.

The news of the higher offer has sparked a positive reaction in the market, with Vacasa’s stock rising 2.4% before market opening on February 4. In a persuasive letter addressed to Vacasa’s special committee and board, which are conducting a strategic review of the company, DK criticized the initial Casago proposal as “inadequate and conditional,” claiming it undervalues Vacasa and fails to treat all shareholders equitably.

DK’s letter emphasized the benefits of taking Vacasa private, arguing that their offer not only presents better value but also promises a swifter completion compared to Casago’s bid. They assured that, under their ownership, Vacasa would continue its current business operations without shifting to the franchise model that Casago employs.

While there is no certainty that DK’s offer will proceed, it has been acknowledged by Vacasa, which has committed to reviewing the proposal thoroughly. As of now, Vacasa remains bound by the merger agreement with Casago, and the board’s recommendation to accept Casago’s offer still stands.

Should the deal with Davidson Kempner succeed, it would take Vacasa private just three years after its public debut, which was valued at $4.4 billion through a merger with Special Purchase Acquisition Company TPG Pace Solutions.

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Vacasa Receives Higher Buyout Offer from Davidson Kempner

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