Thanks to $1.4 billion in dept Fortress Investment Group LLC has been looking for buyers for their Intrawest properties almost since buying the company in August of 2006.
The sales most often spoken about is Whistler Blackcomb (which was nearly auctioned off by creditors during the 2010 Olympics). There were rumors from the Wall Street Journal regarding the attempted sale to Russian billionaire Vladimir Potanin, and another included “oil mogul” Murray Edwards (owner of Fernie Alpine Resort, Kimberley Alpine Resort, Stoneham Mountain Resort and Mont-Sainte-Anne), but none of them were interested in paying what Fortress believes the mountain is worth. Now Fortress is reportedly trying to take the resort public through an IPO, according to a story in The Globe & Mail.
But the well-known name of Whistler may be an easier sell for an audience of retail investors, especially after the successful Olympics at the site last winter. As a result, an IPO is now the favoured option, sources said. . . “They didn’t like the valuations they got [from other buyers] so they will try the IPO market,” said a second person familiar with the situation.
When you can’t get smart money might as well go retail, but It’s difficult to imagine a scenario where this turns out well no matter how sexy Canadian resorts are.
[Link: The Globe & Mail]
I hope Fortess can recover those losses, but I’m not so sure that $14-15 IPO is going to stay so hot. This will be one interesting stock to watch, especially after this ski season.
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