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The
offer of $65.50 per share is a 19.2 percent premium to Cabela's
Friday close.
Shares of Cabela's jumped nearly 15 percent to $62.88 in
premarket trading and were set to open at their highest in more
than two years.
Cabela's has struggled with declining sales of apparel and
footwear and has reported same-store sales growth in only one
quarter in more than three years.
The retailer had been under pressure from activist hedge fund
Elliott Associates L.P, which disclosed an 11.1 percent stake in
October last year, to pursue strategic alternatives.
Reuters reported on Sunday that a consortium of Bass Pro Shops,
Goldman Sachs Group Inc's <GS.N> private equity arm and Capital
One Financial Corp <COF.N> was in the lead to buy the company.
In connection with the deal, Cabela's agreed to sell its credit
card operations to Capital One Financial Corp <COF.N>.
Bass Pro Shops will finance the deal through preferred equity
financing commitments of $2.4 billion from Goldman Sachs and
Pamplona Capital Management.
J.P. Morgan Chase & Co advised Bass Pro Shops and Guggenheim
Securities advised Cabela’s.
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Anil
D'Silva and Don Sebastian)
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