June 29, 2016 / 1:30 PM / 4 years ago

Apollo Global to buy Diamond Resorts for $2.2 billion

(Reuters) - Diamond Resorts International Inc DRII.N said it agreed to be bought by private equity firm Apollo Global Management LLC (APO.N) for about $2.2 billion.

Apollo Global’s offer of $30.25 per share in cash represents a premium of about 26 percent to Diamond Resorts’ closing stock price on Tuesday.

The Las Vegas-based company’s shares rose to $30.00 in morning trading, just shy of the offer price.

The deal follows a series of mergers in the hospitality industry this year.

Marriott International Inc (MAR.O) offered to buy Starwood Hotels & Resorts Worldwide Inc HOT.N after China’s Anbang Insurance Group said it abandoned its $14 billion bid for the Sheraton and Westin hotels operator.

In April, HNA Tourism Group, a division of Chinese aviation and shipping conglomerate HNA Group, agreed to buy Carlson Hotels, the owner of the Radisson hotel chain.

Diamond Resorts, which has a network of 379 vacation destinations in 35 countries, said in February it was exploring strategic alternatives and had retained Centerview Partners LLC as financial adviser.

Diamond Resorts’ common shares will no longer be listed publicly after the closure of the acquisition by Apollo Global.

Apollo Global had a total of $170 billion assets under management as of Dec. 31, including about $11 billion in real estate.

Barclays Capital and RBC Capital Markets LLC advised Apollo Global.

Reporting by Ankit Ajmera in Bengaluru; Editing by Saumyadeb Chakrabarty and Don Sebastian

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