Topgolf Callaway Brands Denies Knowledge of Sale Talks
In an unattributed statement this afternoon, Topgolf Callaway Brands (NYSE: MODG) denied any knowledge of a report that it is for sale.
“While it is our long-standing practice not to respond to market rumors and speculation, in light of today’s unusual market activity, coupled with a recent media report originating in Korea regarding discussions of a potential sale of the Company or its golf equipment business, we confirm that we are not aware of any such discussions. We do not intend to comment further on this topic, and we assume no obligation to make any further announcement or disclosure should circumstances change.”
Citing what it called the “the investment banking industry,” South Korean newspaper, “The Chosun Daily,” this morning reported that Topgolf Callaway Brands’ major shareholders – BlackRock Advisors LLC (12.09%), Providence Equity Partners LLC (11.48%), and Thomas Dundon (10.11%), a founder of Dundon Capital Partners, a Dallas-based private investment firm – have selected a lead manager and are in the process of selling their stakes and management rights.
The newspaper said a “South Korean strategic investor” is reportedly in the running to acquire the company, valued at around $2.98 billion.
The report sent a mini shockwave through Wall Street as Topgolf Callaway Brands stock went as high as $16.57 today (after a March 19 close at $14.39. A brief halt in trading MODG this afternoon appears to stopped speculators, as the stock closed at $15.66.
In March 2021, Callaway Golf acquired Topgolf for approximately $2 billion. The acquisition triggered some speculation that a spin off of the two brands was inevitable, although today’s report is the first sign of any significant fire on those regards.
