ClubCorp resolves issues with investor that sought sale

ClubCorp's disagreement with a vocal minority investor has officially ended. The public company reached an agreement with FrontFour Capital Group that will add two new independent directors to the ClubCorp Board of Directors. With the additions, the ClubCorp Board now comprises 10 directors, nine of whom are independent.

The two new directors are: Simon Turner, formerly the President, Global Development of Starwood Hotels & Resorts, and Emanuel "Manny" Pearlman, Executive Chairman of the Board of Directors of Empire Resorts. 

FrontFour Capital, an investment advisory firm which owns less than 3.4 percent of ClubCorp’s shares, criticized ClubCorp’s stock performance last fall. It said a sale would enable ClubCorp to pay off some of its debt and, in the process, boost the value of its under-performing stock. It called for the company to “retain an investment bank to pursue any and all strategic alternatives, including an outright sale of the company.”

Subsequent to that, ClubCorp formed a committee to investigate options, including a sale. But last month it announced it would no longer pursue a sale. 

"We welcome both Simon and Manny to the Board, and believe this Agreement represents a constructive outcome for the Company and all ClubCorp shareholders,” said John Beckert, Chairman of the Board of ClubCorp. "Our entire Board and management team are committed to enhancing shareholder value, and we intend to leverage our two new independent directors’ unique backgrounds to advance the Company’s growth and success."

Eric Affeldt, who has announced he will resign when a successor is chosen, said the company would "continue our progress and consider additional opportunities to drive growth and unlock the value inherent in ClubCorp.”

Pursuant to the Agreement, FrontFour has agreed to abide by certain customary standstill and voting provisions. In addition, FrontFour has committed to withdraw its director nominations and support the Board’s nominees at the 2017 Annual Meeting.


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