Soho House’s £1.3bn takeover revived after funding scramble

Core Viewpoint - The $1.8 billion takeover of Soho House has been revived with new funding commitments, allowing the company to proceed with a take-private deal with MCR Hotels [1][2]. Funding and Financial Arrangements - Soho House has secured a new $200 million funding commitment, which is crucial for closing the deal with MCR Hotels [1]. - Under the revised terms, Morse Ventures and MCR will each commit $50 million, while Soho House has extended its debt facilities from $150 million to $220 million [2]. - Major shareholders, including Richard Caring, have agreed to roll over their stakes, reducing the funding required for the deal by $50 million [2]. Market Reaction and Share Performance - The initial announcement of MCR's inability to provide the promised $200 million led to a drop in Soho House's stock price, which later rebounded after the new funding arrangement was confirmed [3]. Company Background and Growth - Soho House, founded in 1995, has expanded to 46 locations worldwide, but has faced challenges related to overcrowding and loss of exclusivity [4][7]. - The company temporarily halted membership applications in key cities but has since resumed accepting new members and opened new venues [8][9]. Deal Context and Historical Performance - The takeover deal is priced at $9 per share, representing an 83% premium over the company's recent share price, although it is significantly lower than the $13 per share at its IPO in July 2021 [5]. - MCR's recent acquisition of the BT Tower for £275 million is part of a broader strategy to transform the landmark into a hotel [6].