Diamond Resorts begins $16 per share tender offer for Sunterra shares

By Lisa Kerner

Charlotte, N.C., March 16 - Diamond Resorts, LLC, an affiliate of Diamond Resorts, began its tender offer to purchase all of the outstanding shares of Sunterra Corp. for $16.00 per share in a transaction valued at $700 million, including debt.

The companies entered into a merger agreement on March 9, and the offer is slated to end April 25 unless extended, according to a company news release.

Following the acquisition of at least 90% of Sunterra's outstanding shares, the Diamond Resorts affiliate will merge with and into the Las Vegas vacation ownership company. Any shares not tendered in the offer will be converted into the right to receive $16 per share in cash, the release stated.

Las Vegas-based Diamond Resorts develops, manages and sells vacation ownership properties.

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