Lost in the midst of all the hoopla surrounding the resignation of Stephen Ross was a distinct pop in the stock of ClubLink Corp., the corporate golf giant that controls more than 35 courses in Ontario and Quebec.
According to a CP story:
ClubLink said Robert Poile, Paul Atkinson, 1548795 Ontario Inc., a subsidiary of Southwest Sun Inc., and Keofferam Limited Partnership have agreed to transfer their stock to a numbered company.
For those that don’t know, Poile is the CEO of the company (and a large stakeholder) and Atkinson represents a partnership that controls one of three large voting blocks of shares. The other third is controlled by real estate baron and takeover specialist Rai Sahi. A clarification to the initial press release had this to say:
The press release also disclosed that, following the acquisition by Newco of the Shares, the Shareholders have agreed that Newco will not vote or take any action with respect the Shares without the approval of the holders of not less than 66.6% of the Newco Shares.
ClubLink was advised that the Shares will be acquired by Newco for investment purposes and that Newco does not have any present intention to acquire ownership of, or control over, additional securities of ClubLink.
While “Newco” may not be looking to acquire additional securities, this would appear to me to be a move to take the company private. That wouldn’t be a huge surprise — after all, ClubLink shares have not moved much in several years and the company would appear to think they are undervalued.
It will also be interesting to see what moves ClubLink would make if it did not have to answer publicly to shareholders. How this would impact its strategy and its members is an intriguing question.