WIX Archives
sorry about the extra text... scroll down. for article.N/T
Posted by JohnH on Thu Sep 19, 2002 08:50:30 PM
In reply top MOF's David Price's Company to be Sold posted by JohnH on Thu Sep 19, 2002 08:48:46 PM
:
:
:
:
:
: Home | Register | Home Delivery | Site Map | Archives | P
: rint Edition | Advertise | Feedback | Help
: Hi, JohnHKart
:
:
:
:
: ? Careers
: ? Cars
: ? Homes
: ? Rentals
: ? Newspaper Ads
:
:
: Arts & Entertainment
: Movies, Music, TV, Dining
:
: Money & Investing
: Entertainment Business
: Work & Careers
: Advertising & Marketing
: Commercial Real Estate
:
: Business Tools
: Investor Center
: Money Library
:
:
:
: The World
:
:
: The Nation
:
:
: California / Local
:
:
: Business
:
:
: Politics
:
:
: Sports
:
:
: Technology
:
:
: Travel
:
:
: Editorials, Op-Ed
:
: Sections
: Arts & Entertainment
: Books
: Columns
: Education
: Food
: Health
: Highway 1
: Magazine
: Obituaries
: Real Estate
: Religion
: Science
: So. Cal. Living
: Sunday Opinion
: Times Poll
: For the Record
:
: Editions
: Print Edition
: National
: Wireless
: NewsDirect
:
: Extras
: College Connection
: Sweepstakes
: Discussion Boards
: Crossword
: Horoscope
: Lottery
: Traffic
: Weather
: Multimedia
:
: Archives
: Enter Keyword(s):
:
: Detailed Search
:
: SITE MAP
:
:
: Subscription Services
: (800) 252-9141 Home Delivery Subscriptions
: NewsDirect
: Gift Subscriptions
: College Discount
: Mail Subscriptions
: Additional Subscription
: Information & FAQs
:
:
:
:
:
: ? Careers
: ? Homes
: ? Cars
: ? Rentals
: ? Newspaper Ads
: ? Times Guides
: ? Recycler.com
:
: LA Times Initiatives
: Times in Education
: Reading by 9
: LA Times Books
: LA Times Family Fund
: Times-Mirror Foundation
: Community Events
: Inside the Times
:
: Partners
:
:
:
: From LA Times.com:
:
:
: September 17, 2002
: COMMERCIAL REAL ESTATE
: Goldman-Led Group to Buy National Golf
: Deals: The investors would acquire the company and its af
: filiate for $1.1 billion, leaving founder David Price with
: a small stake in ownership.
:
:
: Times Headlines
:
:
:
:
:
:
:
:
:
: By JESUS SANCHEZ, TIMES STAFF WRITER
:
:
: An investment group headed by Goldman Sachs Group Inc. sai
: d Monday that it had agreed to acquire Santa Monica-based
: National Golf Properties Inc. and its sister company, Amer
: ican Golf Corp., in a $1.1-billion deal that would leave f
: ounder and golf course industry pioneer David G. Price wit
: h a minor ownership stake and management role.
:
: The buyers, which also include affiliates of Starwood Capi
: tal, would supply much needed cash to pay off substantial
: debts and stabilize one of the nation's largest golf cours
: e operations after about a year of mounting financial pres
: sures and charges of conflicts of interest aimed at Price.
: American Golf is a privately run company that leases and
: operates most of the 116 courses owned by National Golf, a
: publicly traded real estate investment trust.
:
: "Given our history of investing in and building golf and l
: eisure-related businesses, this acquisition is a compellin
: g opportunity," said Merrick Kleeman, senior managing dire
: ctor of Starwood Capital, in a statement. "The company has
: assembled an unparalleled collection of assets and a tale
: nted and dedicated team that we believe is well-positioned
: to lead this industry into the future."
:
: Under the deal, the Goldman Sachs group would pay $12 in c
: ash for each share of National Golf common stock for about
: $246 million and would assume debt and other obligations
: of both companies worth about $850 million. The owners of
: American Golf, which is majority-owned by Price and his fa
: mily, would receive $10,000 in cash, a 2% stake in Nationa
: l Golf and the option to purchase 2% of American Golf.
:
: Though National Golf approved a controversial merger with
: American Golf this year, the Goldman Sachs group would pur
: chase the companies separately to minimize taxes, said peo
: ple familiar with the deal. The sale is scheduled to be co
: mpleted early next year if it receives shareholder and reg
: ulatory approval.
:
: The transaction was welcome on Wall Street, where National
: Golf shares rose 99 cents to $11.69 on the New York Stock
: Exchange. They've been as low as $4.30 and as high as $19
: .35 in the last 52 weeks.
:
: The deal that was approved is much less generous to Price
: and his family. A previous agreement would have given Pric
: e and his family up to a 10% stake in the combined compani
: es and allowed Price to remain chairman with a five-year e
: mployment contract. Under the current proposal, Price woul
: d serve in the mostly honorary role as chairman emeritus.
:
: "This is an exciting and important next step in the evolut
: ion of the companies," Price said in a statement. "I'm thr
: illed about all we have accomplished and look forward to m
: any great opportunities ahead."
:
: A former attorney, Price founded American Golf in the earl
: y 1970s and grew rich by turning money-losing private and
: public courses into efficient and profitable ventures by a
: pplying corporate-style operating methods and standards. A
: merican Golf operates more than 300 properties, including
: the prestigious Mountain Gate Golf and Tennis Club in Los
: Angeles and five public courses owned by the city of Long
: Beach.
:
: Price, who is not a golfer, cashed in on the demand for re
: al estate stocks in 1993 by forming National Golf, a real
: estate investment trust that focused on golfing properties
: . National Golf owns the properties but handed management
: duties to American Golf under long-term leases and contrac
: ts.
:
: Both companies came under severe financial pressure last y
: ear resulting from a slowing economy, the Sept. 11 terrori
: st attacks and a glut of new courses. Last year, American
: Golf announced that it would halt lease payments to Nation
: al Golf and that its deteriorating financial health had pu
: t it in technical default on some of its loans. As a resul
: t, National Golf also was in technical default on its loan
: s and was forced to cut its dividend.
:
: Efforts to salvage the business were complicated by Price'
: s control and ownership of both companies. Some shareholde
: rs and industry observers said that Price and his family s
: tood to avoid most of the financial fallout at the expense
: of public stockholders. Shareholder lawsuits claimed that
: Price misappropriated National Golf funds through a "sche
: me of complicated financial dealings" that involved entiti
: es controlled by the executive. The company denied the all
: egations.
:
: Charles Paul, an independent board member of National Golf
: who oversaw the sale of the company, said one of the bigg
: est challenges was assuring shareholders that Price had no
: undue influence. The goal "was to get control of the proc
: ess and make sure it was independent," he said.