Callaway Golf issued a quick response after seeing a report from a Korean news site claiming the brand was for sale.
According to a report from The daily Chosuna South Korean strategic investor is in the running to acquire Topgolf Callaway Marks.
Callaway Golf currently sponsors a number of the world’s biggest stars, highlighted by LIV Golf’s Jon Rahm and PGA Tour duo Xander Schauffele And Sam Burns.
The report states:
“According to the investment banking (IB) industry, Callaway Golf’s largest shareholders – BlackRock Advisors LLC (12.09%), Providence Equity Partners LLC (11.48%) and Thomas Dundon (10.11%), founder of Dallas-based Dundon Capital Partners – a private investment firm based – has selected a lead manager and is in the process of selling his ownership interests and management rights.
He then adds:
“Major shareholders would reportedly spin off Topgolf, a subsidiary of Topgolf Callaway Brands Corp., and sell only Callaway Golf.”
But according to GOLFthe equipment editor Jonathan WallCallaway immediately fired back saying “We confirm that we are not aware of any such discussions.”
The Korean news site reports that Callaway Golf is being spun off from Topgolf and sold.
Callaway issues a statement saying “we confirm that we are not aware of any such discussions.”
This could get interesting… pic.twitter.com/0qBfMWKsZP
– Jonathan Wall (@jonathanrwall) March 20, 2024
Wall tweeted:
“Korean news site reports that Callaway Golf is being spun off from Topgolf and sold.
“Callaway issues a statement saying “we confirm that we are not aware of any such discussions.
“This could get interesting…”
Wall then published Callaway’s full response:
“While our long-standing practice has been to not respond to market rumors and speculation, in light of the unusual market activity today, coupled with a recent media report out of Korea regarding discussions of a sale potential of the Company or its golf equipment business, we confirm that we are not aware of any such discussions. We do not intend to comment further on this matter and we undertake no obligation to make any further announcements or disclosures if circumstances change.
Sports entertainment company Topgolf was acquired by Callaway Golf in 2020.
The combined company later adopted the name Topgolf Callaway Brands, now worth just under 3 billion dollars.
Topgolf Callaway Brands Corp. reported sales of more than 4 billion dollars in 2023, i.e. up 7.2% in 2022.
Callaway’s net profit last year was $95 million.
The company is currently listed on the New York Stock Exchange (NYSE) and has a market capitalization of $2.5 billion.
