May Special Situations Research Forum (Members Only, Limited Space) (Ended)
Interval Leisure Group, Inc. (IILG)
Special situations are corporate actions which could reveal an undervalued security and hence an investment opportunity. Some examples of Special Situations are spinoffs, liquidations, tender offers, restructurings, bankruptcy exits etc. In the Special Situations Research Forum we will discuss an investment situation decided 3 weeks in advance. Every participant in the Forum is expected to research the topic before attending the meeting.
Interval Leisure Group, Inc. (IILG) provides services to the vacation ownership industry. IILG started as an asset light membership exchange for time share owners to swap weeks (or points) with different weeks at their property or other participating properties. Overtime, IILG began deploying excess cash to acquire other asset light businesses in adjacent spaces including property management and vacation rentals. Recently, IILG has ventured into the more asset intensive time share development through the modest acquisition of Hyatt's vacation ownership business in 2014 and the transformative acquisition of Starwood's vacation ownership business (Vistanata) via a Reverse Morris Trust (RMT) transaction announced on October 28, 2015, and expected to close on April 30, 2016. Since the announcement, IILG's shares have fallen by over 35% from nearly $21 per share to recent prices near $13.50 per share and as low as $11 per share in February 2016. The usual technical overhang expected with an RMT transaction -- Vistana represents less than 10% of the value of Starwood but Starwood shareholders will own 55% of the pro forma company -- has been exacerbated by selling pressure from merger arbitrage investors playing the spread on the Starwood/Marriott announced merger. As a result, IILG trades at a significant discount to peers Marriott Vacations and Wyndham Worldwide. IILG was previously a part of Barry Diller's IAC InterActiveCorp until it was spun-off to shareholders in 2008 resulting in John Malone's Liberty Interactive Corporation being its largest shareholder.
This meeting is a collaborative effort so please be sure to research the topic before the meeting and be prepared to contribute to the discussion.
Attendance will be limited to 15 members - first-come, first-served.
Vishal Mishra; Mishra Capital Partners LLC
Nick Redmond; Oculus Asset Management
Members - Free
Attire: Business Casual
Registration: Limited to 15 members
A dial-in option will be available. Phone number and passcode will be distributed the day prior to discussion.
5:30pm - 7:00pm - Discussion
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