Bluegreen in nonbinding pact for $500M buyout

Bluegreen Corp., an operator of vacation ownership plans and planned residential communities, said Monday it reached a nonbinding agreement to be purchased by Diamond Resorts International for about $500 million, excluding debt.

The deal works out to a price of $15 per share, more than double Bluegreen's Monday closing price of $6.44.

The tentative agreement allows Diamond Resorts to conduct a more thorough due diligence under an exclusive negotiating window that expires Sept. 15. Any final agreement would likely include a "go-shop" provision that would allow Bluegreen to solicit a more lucrative offer.

Diamond Resorts is an operator of vacation ownership plans with 110 resorts located across 14 countries.

Bluegreen had previously said it was considering strategic alternatives for the company.

Shares rose 17 cents, or 2.7 percent, in regular trading Monday.