2024-03-20 22:04:51 ET
Summary
- Topgolf Callaway Brands' shares spiked after rumors emerged that the company could be up for sale.
- The potential buyout plan involves selling the Callaway Golf operations for around $2.98 billion.
- The management team issued a statement denying any discussions but a deal could still be in the early stages.
- Such a deal would need to be at a substantial premium because of how cheap the stock is.
March 20th ended up being a very interesting day for shareholders of Topgolf Callaway Brands ( MODG ). Shares of the business spiked, climbing as high as 15.1% before closing 8.8% higher. This was in response to a report that the business could very well be up for sale. The allegation was that the company's major shareholders had selected a lead manager and were in the process of selling their ownership stakes and management rights in the firm. Any sort of purchase like this would likely result in significant upside for investors in a very short window of time. But in all honesty, I see it is being unlikely that management would allow such a maneuver to take place. Or if it does, it would have to be at a price massively higher than where shares are today....
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Topgolf Callaway Brands: The Stock Is Attractive, Even Without A Buyout