Added to YB: 2024-12-30
Pitch date: 2024-12-29
SHCO [bearish]
Soho House & Co Inc.
-19.55%
current return
Author Info
No bio for this author
Company Info
Soho House & Co Inc. operates a global membership platform of physical and digital spaces that connects a group of members in the United Kingdom, the Americas, Europe, and internationally.
Market Cap
$1.8B
Pitch Price
$7.52
Price Target
5.00 (-44%)
Dividend
N/A
EV/EBITDA
12.73
P/E
-22.19
EV/Sales
3.20
Sector
Hotels, Restaurants and Leisure
Category
special_situation
M&A Arb: Betting Against Soho House (SHCO)
SHCO (short): Soho House is a small speculative merger-arbitrage short at $7.59: the market implies only a 55% probability that the conditional, unnamed-consortium offer closes at $9. Skepticism rests first on that low probability despite no regulatory risk, second on uncertain support from Richard Caring and founder Nick Jones, and third on potentially unsuitable deal conditions. Failure could return shares to roughly $5, implying 34% downside, versus 18.6% upside if the deal closes.
Read full article (7 min)