Intrawest Sells Majority Stake in Mammoth
Posted: Tue Dec 27, 2005 12:54 pm
Intrawest Sells Majority Stake in Mammoth
Associated Press
NEW YORK (AP) - Ski resort operator Intrawest Corp. said Tuesday it sold a majority of its stake, valued at $365 million, in Mammoth Mountain Ski Area to an entity controlled by real estate developer Starwood Capital Group Global LLC.
The sale resulted in a pretax profit of $101 million for Intrawest.
Intrawest has retained a 15 percent interest in Mammoth Mountain and will continue to provide management and other corporate services for the resort.
Rusty Gregory will remain as chairman and chief executive with an approximate 12.5 percent interest.
Also as previously announced, Intrawest and Starwood have agreed to a joint venture to develop the majority of Intrawest's separately-owned real estate in the town of Mammoth Lakes. Intrawest and Starwood expect to finalize the deal by the end of January.
Shares of Vancouver, British Columbia-based Intrawest rose 9 cents to $28.61 on the New York Stock Exchange.
